FT'S LEX COLUMN
THE LEX COLUMN: Corporate splits and the spin cycle
Recent examples of spin-offs should raise questions for long-term investors
As the financial cycle slides from late summer into autumn in the northern hemisphere, optimism turns to fear.
Stretched valuations deter M&A. High multiples and patchier earnings make flotations harder to accomplish. The shortage of conventional opportunities has stoked enthusiasm for corporate break-ups, demergers in particular.