Fortune Up Slightly After Plans To Split Company

Shares of Fortune Brands, Inc. FO are up 1% this morning after the company announced it will be splitting its businesses, due to pressure from activist investor Bill Ackman. This is being done to seek better shareholder returns for the company. Fortune Brands Inc. will split into three businesses, spinning off or selling its home and golf units, but retain the liquor portion of the business. The spin offs will be tax free to shareholders. Some of the brands in the home goods unit are Moen, which makes faucets, and the golf unit boasts brands like Footjoy and Titleist. Fortune's liquir business has Jim Beam bourbon, Courvoisier cognac and Sauza tequila. “While the breadth and balance of our portfolio have served shareholders very well, we see the potential for even greater value by separating our businesses into focused companies at a time when they have emerged from the economic downturn in such strong positions,” said Bruce Carbonari, CEO. Fortune said it expects the spin offs to occur “within the next several months.” At last check, shares of FO were up 65 cents to $61.80.