Abbott Laboratories (ABT) Spin-off

Abbott Laboratories LogoAbbVie Inc. (ABBV), the pharmaceutical unit of Abbott Laboratories (ABT), sold $14.7 billion worth of bonds yesterday as it prepares to spin-off. Abbvie will distribute about $8.5 billion of the proceeds to the parent Abbot. “Abbott intends to use the proceeds it receives from AbbVie, in part, to fund its previously announced cash tender offers for certain of Abbott’s outstanding notes.”

Spin-off

After the spin-off, AbbVie will be a “research-based biopharmaceutical leader” with a portfolio of prominent drugs such as Humira, AndroGel and Duodopa. Abbot will contain four units:

  • Nutrition (Similac, Ensure, PediaSure)
  • Diagnostics (Immunoassay Diagnostics, Blood Screening)
  • Medical Devices
  • Established pharmaceuticals (branded generics portfolio)

Here are the details of the spin-offs:

  • Company: AbbVie Inc.
  • Ticker Symbol: ABBV
  • Key Dates: When-issued in mid-December. Regular-way trading begins 1/2/2013
  • Distribution: Distribution ration will be announced in December. 

Here are investor presentations for both companies:

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Disclosure: I do not own ABT

One thought on “Abbott Laboratories (ABT) Spin-off

  1. Donald Yacktman, the famous fund manager of Yacktman Asset Management Company, did initiate a very small position in Abbot in his latest quarterly filing that came out yesterday (only 3,000 shares).

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