Blue-Chip Spinoffs Fall Flat This Week With Investors Fleeing to Safer Bets
- Kellogg, Danaher, Aramark spins begin regular-way trading
- Spins are ‘first things to get hit’ when market slides: Osman
Traders work the floor of the New York Stock Exchange.
Photographer: Michael M. Santiago/Getty ImagesThis article is for subscribers only.
A group of highly-anticipated spinoffs stumbled out of the gate this week as a wave of selling across the market took a heavy toll on household names.
Frosted Flakes maker WK Kellogg Co.’s split from Kellanova was met with a thud as investors dumped consumer staples stocks, while environmental-solutions firm Veralto Corp. — separated from Danaher Corp. — and Aramark’s Vestis Corp., which runs a uniforms and workplace supplies business, spiraled downward. Each of the three spun out stocks sank more than 10% this week.