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DewDiligence

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DewDiligence

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Re: DewDiligence post# 151197

Friday, 10/26/2012 1:21:26 PM

Friday, October 26, 2012 1:21:26 PM

Post# of 257253
A quirk of the ABT-ABBV split-up (to take effect on 1/1/13) is that ABT has to buy back some of its debt at a premium while ABBV issues new debt and transfers the resulting cash to ABT in the form of a one-time dividend:

http://finance.yahoo.com/news/abbott-announces-cash-tender-offers-135900652.html

The end results of this multi-step operation accomplishes essentially nothing for shareholders of the two companies, but is necessary for legal/tax reasons and is yet another payday for the investment bankers.

“The efficient-market hypothesis may be
the foremost piece of B.S. ever promulgated
in any area of human knowledge!”

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