Liberty Global spinoff(s)

Liberty Global is committed to a spinoff of “Sunrise” on the Swiss exchange, and the spinoff will pay a dividend which should support the share price better, too.

Liberty Global is talking up several spins over the next few years, and each of them could be worth 40-100% of what LBTYA sells for right now. Liberty claims that their SOTP valuation says Liberty is worth $48/sh… how much do you all think you’d discount that to conclude that the situation is not attractive now? Can you believe none of the spins will work or are worth anything?!

Haven’t got a position, myself. WBD has me dis-inclined to follow another Malone situation, but I am thinking about it.

Liberty used to have success with every single deal (spinoff) that they’ve done, but recently they seem to have faltered a bit. Their LSXMA deal (upcoming spinoff) appears to be in trouble and is dropping rapidly (looks like it dropped from the low 30s to the low 20s recently). And the live nation lawsuit isn’t going to help matters.

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But, doesn’t this just compound the attraction though, via “discount by assumed association”? Liberty LIve Entertainment is tracking stock of Liberty Media, which is entirely separate from Liberty Global…

Rob, it doesn’t have to even get that close to $48 for this to be a significant winner, when the stock is now a measly $17. Plenty of room for this to double and still work out quite well over a two- or three-year time frame.

Looks interesting.

Jim

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Crossed 20 this week. I have a small position with $17 basis.

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Last week, Sunrise communications was spun out, 1 share of SNRE for every 5 owned shares of Liberty Global. Total returns are over 20% since June 1.