Gap Can't Have It Both Ways
When Gap (NYSE: GPS) announced last March that it would spin off Old Navy, investors loved the idea.
The stock soared 16% as investors saw the spinoff as a way of unlocking the value of Old Navy, which has been Gap's most successful brand for much of the last decade, and better focus on turning around the company's struggling brands, which include Banana Republic.
Ten months later, after CEO Art Peck was forced out, a funny thing happened. Gap changed its mind, but the stock jumped again. Shares climbed as much as 10% after hours and finished up 5% on Thursday after the retailer said it wouldn't pursue the separation.
Source Fool.com
