Larry Light in Forbes.com: Activist Pressures For Demergers Will Hurt AT&T And Others
The financial engineers are at it again. Discussions about financial engineering routinely focus on massive debt accumulation, zero-based budgeting, share buybacks, increased dividends for investors and cost cutting. Now, the spotlight is on spinoffs. It turns out that spinoffs forced by activist investors can be damaging for the corporate brand that is asked to separate – demerger – itself from its assets.
Read the rest of Larry’s thoughts here.