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The move comes in the wake of some major U.S. corporate split-ups in the past, as listed below.
YEAR COMPANY
1984 AT&T Inc (NYSE:T) In 1974, the U.S. government
filed an antitrust lawsuit
against AT&T Corp because it had
a monopoly on telephone lines.
After eight years of litigation,
the two sides reached a
settlement that led to AT&T
giving up control of its
regional operating companies, or
Baby Bells. (https://reut.rs/3mWDI3Q)
2015 Ebay Inc In June 2015, e-commerce firm
eBay Inc (NASDAQ:EBAY) approved the spinoff of
PayPal (NASDAQ:PYPL), which is up 431% since
it began trading. EBay rose 168%
during that time frame. (https://www.ebayinc.com/stories/news/ebay-inc-board-approves-completion-of-ebay-and-paypal-separation/)
2015 Hewlett Packard Co In November 2015,
Hewlett-Packard split into two
listed companies. Hewlett
Packard Enterprise, which
comprises the corporate hardware
and service business, while
Hewlett-Packard, which was
renamed HP Inc (NYSE:HPQ), comprises the
computers and printers business.
Both stocks have risen since
that time with HPE up 81.5% and
HPQ up 159.6%.(https://reut.rs/3og9c4i)
2016 Honeywell (NASDAQ:HON) In September 2016, Honeywell
International International Inc, a U.S.
manufacturer of aerospace parts
and climate control systems,
approved the spinoff its $1.3
billion resins and chemicals
operations into a standalone
company, AdvanSix (NYSE:ASIX) Inc. That
stock is up 200.4% since it
began trading, while Honeywell
rose 105% during that time
period. (https://reut.rs/3F36dTY)
2019 DuPont (NYSE:DD) In April 2019, DowDuPont Inc
spun off its material science
division Dow, Inc, followed in
June 2019 with agriscience
company Corteva (NYSE:CTVA), as part of its
breakup into three companies.
Since the starts of their
trading, Dow is up 13.9%,
Corteva is up 77.4%, but DuPont
was only about 4.6% higher. (https://reut.rs/31McHYU)
2020 United Technologies (NYSE:RTX) In March 2020, United
Technologies Corp approved the
spinoffs of Carrier Global (NYSE:CARR)
Corporation and Otis Worldwide (NYSE:OTIS)
Corporation. Carrier has climbed
312% and Otis rose 89.9% since
they commenced trading. (https://www.prnewswire.com/news-releases/united-technologies-board-of-directors-approves-separation-of-carrier-and-otis-and-declares-spin-off-distribution-of-carrier-and-otis-shares-301021893.html)
2021 IBM (NYSE:IBM) IBM spun off a large chunk of
its company, the managed and
infrastructure business, as
Kyndryl in November 2021, as the
century-old tech company shed
its slow-growing business to
focus on high-margin cloud and
artificial intelligence
businesses. Kyndryl was down 27%
since it began trading earlier
this month and IBM dipped 0.47%
since then.
