I am guessing the Vectrus/Exelis(EGL) is being done for the same reasons.
Rukawa: Any thoughts on the spinoff you mentioned? I read through the form 10 and noticed a few interesting items...
~The split is 1 per 18 shares. The numbers I found look like as of June 30 VEC had 29% of the revenue, 15% of the Net Income and only 5% of the BV of XLS. I always find it interesting where the spinoff ration comes from.
~VEC will get substantially all of its rev from the DOD, and 60% is from just 4 contracts. Could be risky--I don't have any way of handicapping the risk those contacts go away or are reduced.
~There will be no fractional shares issued, the transfer agent will combine all fractional shares and sell them on the open market. This could obviously cause undue pressure on the stock, as could the fact the VEC will have a mkt cap of under 500m(probably) vs XLS of 3.5 billion.
~I don't haven't looked at any details of the LLL and EGL spinoff, but it looks like EGL fell from 22(or 17 in another charting package) down to 14 for a few days, then rallied back nicely.
Any thoughts would be greatly appreciated.