Abbott (ABT) says the SEC has declared effective the Form 10 Registration Statement...

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Chip Oat Comments (32)
 
When does ABBV start trading "WI"?
7 Dec 2012, 08:18 PM Reply Like

gldhwk Comments (45)
 
Monday the 10th.
8 Dec 2012, 12:33 AM Reply Like

JimHarris Comments (7)
 
As a retiree of 15 years after 28 years with Abbott I have mixed feelings about this split. The company wasn't so large that a strong management team couldn't continue successfully. But then I felt the same way a few years ago when the hospital products groups were spun off. Until Abt matched the bigs in the business the split-offs just didn't seem necessary---unless Miles and his team just can't handle the growth and diversification. Apparently the board felt the various groups would be better managed after this move. That's unfortunate IMO.
8 Dec 2012, 02:55 AM Reply Like

nnegron Comment (1)
 
Can someone tell me what will happen my stocks that I have in Abbott.?
Will they be splited in half at the same price?
8 Dec 2012, 12:43 PM Reply Like

magirao Comments (38)
 
From Abott's site....

"On Nov. 28, 2012, Abbott's board of directors approved the separation of AbbVie, and declared a special dividend distribution of one share of AbbVie common stock for each Abbott common share outstanding as of the close of business on Dec. 12, 2012, the record date for the distribution. Abbott expects the special dividend of AbbVie stock will be distributed on Jan. 1, 2013."
10 Dec 2012, 03:48 PM Reply Like

siteobserver Comments (11)
 
This spinout is going to dramatically increase shareholder value over time. The division of the two entities incurs some temporary costs - which required the bond issue - but long term the result is the creation of TWO biopharma companies, each with the reliable, stable, well known management approach and industry leadership we've come to appreciate as investors, at Abbott Labs. There is no reason to believe that both companies won't be successful. This split is a very smart "downsizing" - which sounds like an odd term considering this creates two multi-billion dollar corporate powerhouses/market leaders.

Also, there are important realities occurring in the biopharma market that require a keen, targeted focus on the major technology sectors. These sectors require slightly different strategic and management approaches, so this is a shrewd move by ABT.

I also believe that the stock has run up quite a bit, and pulled back somewhat when the bond issuance was announced - it should be noted that this is the best time in history, with the lowest interest rates ever - to push a large bond issue. This provides the funding needed to duplicate facilities, staff, infrastructure, equipment, etc. and should also provide state of the art modern research facilities.

I don't see any downside to this move and as an investor I am delighted. This is the kind of strategic move that investors are always clamoring for - the unlocking of increased shareholder value - and most corporations do not take these radical steps. Let's revisit the two corporations and their stock value in 12 months and everyone can tell me if I was right to be optimistic and pleased.
8 Dec 2012, 12:48 PM Reply Like

jimcats Comments (10)
 
SiteObserver, I wish I shared your enthusiasm about this split, but I don't.

Nnegron, a recent email to retirees pointed out that the dividends for the last quarter will be paid out as usual. Then we'll receive shares of both Abt and Abbvie, broken down such that the combined value of the holdings will remain the same as they were before the split. Until, or unless, the two stocks value on the market increases (or decreases) there will be no change in total value. Some think this is a great move and eventually will grow the value of our holdings; I'm just not that sure.

I plan to hold onto my shares of both companies coming out of the split and just see what happens for a while.
8 Dec 2012, 05:50 PM Reply Like