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While Washington Stews, You Can Cash In on the Biggest "Tax-Inversion" Deal in History

Back in June 2012, we recommended that you pick up shares of Big Pharma player Abbott Laboratories Inc. (NYSE: ABT). The reason: Abbott was planning to split in two at the end of the year, meaning folks who took our advice would end up with stakes in two companies for the price of one.

There was more than bargain-basement thinking at work here.

You see, these corporate breakups – known as spin-offs – have a habit of turning into market-beating profit plays. And the newly minted spin-off firms often end up as takeover fodder – also at big profits.

Abbott followed part of that blueprint.

  • Featured Story

    Nationalizing Northern Rock

    By Jennifer Yousfi Managing Editor After a five-month search to find a private buyer for Northern Rock PLC (PINK: NHRKF), the U.K. government has decided to nationalize the struggling bank. The law that would grant sweeping powers to the government to place troubled financial institutions under state control is currently being debated in the House […]
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  • UK Investments

  • U.K. Prime Minister Acknowledges Tough Year Ahead By Jennifer Yousfi Managing Editor British Prime Minister Gordon Brown used his New Year's address to offer a painfully honest appraisal of the United Kingdom's economic prospects for 2008. And as a former Chancellor of the Exchequer [equivalent to the United States' Secretary of the Treasury] for 10 years under Tony Blair, Brown knows what […] Read More...
  • U.K. Markets Mirror U.S. Woes By Jennifer Yousfi Managing Editor London stocks plunged yesterday (Monday) following Wall Street's lead from Friday.  The sell-off crossed all industries with only a handful of stocks in the FTSE 100 Index showing gains for the day as the index fell 1.9% for the day.  After U.S. Consumer Price Index data was released on Friday, […] Read More...
  • Virgin Group Wins Government Approval to Buy Northern Rock; Some Shareholders Peeved By Mike Caggeso Associate Editor Virgin Group Ltd., and a team of investors, have won British government approval to buy troubled lender Northern Rock PLC (PINK: NHRKF), sending the embattled bank's U.K.-listed shares up more than 28% in trading yesterday (Monday). In a statement released by Northern Rock, Virgin's proposal will immediately repay $22.7 billion […] Read More...
  • U.K. Home Prices, Economy Both Headed for a Fall, Economists Predict By Mike Caggeso Associate Editor The U.K. housing market is slowing, and housing prices could actually decline next year, according to analyst forecasts and the latest batch of government economic reports. United Kingdom housing prices actually rose 0.3%, a slowdown from the 0.5% advance in August and the scorching 2% leap in July. Also, the […] Read More...
  • The Two Ways the Global Shipping Sector Can Deliver Bulk Investment Profits One shipping company's stock is up 588% percent year-to-date. Another is up 149%. A special report developed jointly by Eoin Gleeson at our U.K. affiliate, MoneyWeek Magazine, and Money Morning Associate Editor Mike Caggeso, explains why the maritime shipping industry is about to get bigger and deliver more profits to investors.  Shipping stocks have soared […] Read More...
  • How to Get "Asian-Sized" Returns in Europe By Martin Hutchinson Director of Global Investing Research Free-market U.S. conservatives like to talk about "old Europe." They tell stories about the sclerotic EU bureaucracy, the intransigent French unions, and the rigid German banking system. Problem is, they ignore the really interesting Europe. The Europe that is growing rapidly. The Europe with soaring productivity, low […] Read More...
  • Carlsberg, Heineken Eye Scottish & Newcastle By Jason Simpkins Staff Writer Heineken NV (HINKY.PK) has entered into talks with Carlsberg A/S (CABHF.PK) regarding a joint takeover bid for Scottish & Newcastle PLC. The two companies have not made any formal approach, but have said any takeover offer would be in cash. The unexpected announcement came in a joint statement released Wednesday, […] Read More...
  • U.S. Market Update: Earnings Start, Deals Continue, Fed Minutes Upbeat… The almighty consumer accounts for two-thirds of the economy's growth (or, at least, that's what the "experts" always claim). Well, last week, they received some pretty mixed signals about consumer activity: past, present, and future. While the world's top retailer, Wal-Mart Stores Inc. (WMT), surprisingly increased its earnings forecast for the third quarter, few others […] Read More...
  • Thirsty for Profits? Ten Ways to Play the Worldwide Beer Market By Martin Hutchinson Director of Global Investing Research SAB Miller PLC (SBMRY) and Molson Coors Brewing Co. (TAP) agreed on Tuesday to merge their U.S. brewing operations, creating a worthy rival for Anheuser-Busch Cos. Inc. (BUD). The deal also highlights the fact that – pretty well throughout the world (well, may be not in Moslem […] Read More...
  • Northern Rock Buys Time Before Getting Bought Out From Staff Reports Citigroup Inc. (C) is preparing to lend Northern Rock PLC – the United Kingdom bank bailed out by the Bank of England – $20.4 billion so it can buy time for a buyout, according to news reports from both Bloomberg News and the Financial Times. Northern Rock desperately needs to refinance 14 […] Read More...
  • Four Ways to Profit as China Ignites Global Milk and Dairy Prices By Mike Caggeso Staff Writer China's ever-growing middle class has driven up the average price of milk around the world, upsetting everyday grocery shoppers but also providing deft investors with opportunities to profit. The newfound demand from the Far East has also raised the incomes of dairy farmers and changed the way milk – once […] Read More...
  • CRH eyes possible $4.5 billion buyout of Cemex operations From Staff Reports Dublin-based CRH PLC (CRH) is eyeing a possible $3.5 billion to $4.5 billion acquisition of Cemex SAB's (CX) concrete plants, cement division and pipe-making unit, the companies announced yesterday (Monday). For CRH, the world's second-biggest maker of building materials, it's all about timing. The majority of the assets that the Monterrey, Mexico-based […] Read More...
  • UK Central Bank Raises Rates; ECB Stands Pat The Bank of England boosted its benchmark interest rate by a quarter point to 5.75% on Thursday - the fifth increase in under a year Read More...