Re Altria/Kraft spinn-off Mar. 30.?

Question

my research shows Altria shareholders will receive .7 of a share for each share of Altria post spinn-off. Altria's price will be adjusted downward, but Kraft's price might rise after it becomes part of the S&P as index funds will be forced to purchase. Later they may spinn-off PM Intl and SAB Miller. I've heard Altria shares could reach 100. Does this include the total of the spun-off parts? Thanks

Answer 1

I'm not too familiar with this case, but usually when a company spins off a division, they think together that division is holding them down. So at first Altria's price will be adjusted downward, but do to faster growth of its "core business," its alone price may be expected to reach 100.