MWV Sells Media & Entertainment Operations
MeadWestvaco Corporation (NYSE: MWV) announced Friday that it would sell its Global Media & Entertainment Business to Atlas Holdings for $68M, giving MWV a $125M pretax loss on the sale, Deutsche Bank reports.
During 2009, Media & Entertainment generated $400M in sales, representing 18% of sales in the Consumer Solutions segment, according to Deutsche Bank.
Deutsche Bank remains skeptical on MWV's potential to prosper in Consumer Solution after the sale, saying that there isn't much evidence of companies similar to MWV generating returns in innovation-oriented packaging businesses.
Deutsche Bank maintains its Buy rating and $29 price target.
MeadWestvaco Corporation closed yesterday at $23.06.
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