CBS Corp (CBS) – Split Off transaction – $470 opportunity

Current Price –CBS $58.45, ETM $11.20

Offer Price – $1.08 stock of ETM for $1 stock of CBS (subject to upper limit of 5.7466 ETM shares per share of CBS)

Upside – 8% or $470 for Odd Lot holders

Expiration date – November 16, 2017

This is a standard split-off transaction of which I have already posted quite a few. The most recent ones were PG/COTY and LMT/LDOS split-offs. CBS also had another split-off back in 2014. I recommend reading through those and examining share price behavior during and after the tender to familiarize yourselves with risks involved in this kind of transaction.

Baxter International (BAX) – Split-off Transaction – $320 upside

Current Price – BAX $43.32, BXLT $41.38;

Offer Price – $1.0752 stock of BXLT for $1 stock of BAX (subject to upper limit of 1.4026 BXLT shares per share of BAX);

Upside – 7.5% or $320 for Odd Lot holders;

Expiration date – May 18, 2016;

General Electric (GE) – Split-off transaction – $216 expected return (potential for $600 return)

Current Price – GE $29.03, SYF $31.32;

Offer Price – $1.0753 stock of SYF for $1 stock of GE (subject to upper limit of 1.1308 SYF shares per share of GE);

Upside – 7.5% or $216 for Odd Lot holders (if price differential increases towards upper limit – as happened with other recent split-off transactions – the return will be c. $600);

Expiration date – November 16, 2015;

Danaher (DHR) – Split off Transaction – $635 upside

Danaher has updated the split off offer by increasing the upper limit and the situation became profitable one more time.

Current Price – DHR $85.44, NTCT $38.42

Offer Price – $107.53 stock of NTCT for $100 stock of DHR (subject to upper limit)

Upside – 7.5% or $636 for Odd Lot holders

Expiration date – July 9, 2015