... and their parents with those of acquired carve‐outs and their parents. Also, Gleason et al.’s study of reacquired carve‐outs has been extended in several ways. First, parent company three‐year returns after the reacquisition was examined. Next, returns for reacquired carve‐outs were contrasted...

... prone to sell their bonds due to the increased collateral provided by new investors in the carve‐out partial offering. Spin‐offs redistribute assets and liabilities between parent companies and their former subsidiaries. A suboptimal allocation of debt and assets might cause a wealth transfer from...