New spanner snarls industrial breakup machines
SOLS•Mutual breakups remain rare
These realizations, albeit belated, may help explain the seemingly amicable uncoupling by Solstice CEO David Sewell and his Element counterpart Benjamin Gliklich. Such mutual breakups occur less than 1% of the time, according to one academic study. The outcome is also a reminder about the many challenges of finding the key to "unlock" value. Some 55% of big spinoffs generate negative shareholder returns for both the new company and its former parent three years later, consulting firm McKinsey found. AI may be fool's gold for CEOs seeking riches in financial engineering.
CONTEXT NEWS
Solstice Advanced Materials and Element Solutions said after the market closed on August 27 that they had mutually agreed to terminate their planned $14.5 billion merger. No fees will be payable by either party.
Solstice's share price closed about 16% higher on August 28, at $63.53, after falling 15% on July 6, when the deal was initially announced.
