In today’s briefing:
- Interesting that the Buy Parent Company + Sell Subsidiary Trade Does Not Work
Interesting that the Buy Parent Company + Sell Subsidiary Trade Does Not Work
- It is an expected option for a parent company to make a profitable subsidiary wholly owned by the parent company, an environment that demands improved ROE.
- It is natural that the market would receive a stock offering by a large shareholder with more information than others as the stock price is higher than its fair value.
- It’s not unrelated to the fact that few shareholder proposals are approved and company proposals are rejected at AGMs, and that most domestic investment managers affiliates of major financial institutions.
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