Thorn to reveal moves for split
Sunday 18 February 1996
The group, advised by SBC Warburg and Goldman Sachs, is expected to announce plans to separate its highly rated EMI and Virgin music and HMV stores operations from the more pedestrian TV and electrical rentals division.
Over the past year, Thorn EMI shares have rocketed from pounds 10 to over pounds 16 on hopes of a demerger, confirming its view that the the two businesses will be worth more separately than in a single group.
Analysts reckon the music business, whose assets include songs by the Rolling Stones and Janet Jackson, could be worth pounds 6bn and the rentals side pounds 2bn or more. The agglomerated group is currently valued at pounds 7.2bn at Friday's closing price of pounds 16.69.
Sir Colin Southgate, the executive chairman, is expected to remain chairman of both new companies. Music chief Jim Fifield will be chief executive of demerged EMI, while rentals chief Mike Metcalf will run the rump business.
Analysts are eager to learn how the group debt will be distributed between the two companies and the total cost of the demerger. There are also complex tax implications.
Sir Colin first publicly mooted the idea of a break-up at the annual meeting last July and said the group would announce its decision in early 1996.
Demergers have successfully unlocked hidden value in the past. Zeneca's separation from ICI was a great success, as was the demerger of Vodafone from Racal and Argos from BAT Industries. But, with no hidden stars, Hanson has won few fans for its recent four-way demerger plans.
Comment, page 2
- 2 Pope Francis issues top 10 tips for happiness – including don’t try to convert other people
- 4 Disney heiress Abigail disowns her share of family profits in West Bank company
- 5 Israel's propaganda machine is finally starting to misfire
Russell Brand accuses FOX News anchor Sean Hannity of terrorism after aggressive Israel-Gaza debate
Pope Francis issues top 10 tips for happiness – including don’t try to convert other people
Sabina Altynbekova, the girl branded 'too good looking' for volleyball, says social media obsession with her is a 'bit much'
Justin Bieber posts Instagram photo of Orlando Bloom crying after Ibiza fight 'over Miranda Kerr'
Disney heiress Abigail disowns her share of family profits in West Bank company
The secret report that helps Israel hide facts
Land for gas: Merkel and Putin discussed secret deal could end Ukraine crisis
Woman and two children killed by mob in riots over 'blasphemous' Facebook post in Pakistan
A day in the life of Vladimir Putin: The dictator in his labyrinth
Putin is 'thuggish, dishonest and reckless', says British ambassador to US
Richard Dawkins tweets: 'Date rape is bad, stranger rape is worse'
- < Previous
- Next >
iJobs Money & Business
£20000 - £24000 per annum: Harrington Starr: A leading provider of web based m...
£28000 - £32000 per annum: Ashdown Group: Secretary (Sales Team Support) - Mat...
Competitive (DOE): Guru Careers: We are looking for an Assistant Management Ac...
£600 - £700 per day + competitive: Orgtel: Senior Investment Accounting Change...