Yesterday the long
awaited news to split off Philip Morris International broke out, just
under six months from splitting off Kraft. They won't exactly be
ridding PM International just yet - no, they've actually just come out
to affirm that it will go, but the decision of when won't be firmed
until January 2008, but when they do, their headquarter will be out of
Switzerland. Its good really, like other investors and myself
included, we saw this coming, and to be entirely honest, it came out
earlier than I had expected - the confirmation, not the schedule that
is. PM International has twice the size of revenues than PM US, and
while US continues to fall, their International unit doesn't seem any
stop in growth anytime soon.
So this is what was
announced. PM International will get listed on NYSE, like PMI or
something...oh wait, that's already taken by PMI Group. Anyways, Louis
C. Camilleri, Altria's current CEO will take charge. Meanwhile,
Michael E. Szymanczyk, CEO of PM US, will
become chairman and CEO of Altria.
Will it be good investment? Most definitely! because if Philip
Morris U.S. gets spun
off at a lower valuation than say RAI, or British Tobacco, together
with their continued good dividend (hiked 10% too) and strong
asset-base, than they'd definitely be a good buy. Of course, is it
worthwhile to get in now? Well, I personally don't think it would be
too bad, but it wouldn't hurt to stay afloat and see what comes out
soon. Their prices stayed low yesterday amidst the news, so I'd figure
others are also sitting tight and waiting.