Whitewave Spin-off Prices at $17

WhiteWave (WWAV), the spin-off of Dean Foods (DF), based on strong investor interest increased the size, from 20 million share to 23 million shares, and price, from $14-$16/share to $17/share of their IPO.

At $17/share, the company is worth about $2.9 billion. Given that Dean is worth $3.5 billion, there should be a pop in Dean’s shares tomorrow. 

When the initial pricing was announced, I wrote that Dean was undervalued and urged investors to buy. I initiated a position at $16.96. Read the article here.

WhiteWave starts trading tomorrow. 

Disclosure: I am long Dean. 

12 thoughts on “Whitewave Spin-off Prices at $17

  1. I will most likely short equal amount of WWAV as I have of Dean depending on the pricing. WWAV seems overvalued to me (over 25 times 2013 earnings), but it will probably pop in the open due to low float.

  2. I just picked up more shares at around $19 after hours! I don’t understand why it has not shot up more after hours, but lets see. $2.9 Billion + $1 to $1.5 Billion = $3.9 to $4.4 Billion. Current market cap of Dean is $3.5 Billion..

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