Although the conglomerate discount is not usually as extreme as that, its sharp increase in the past year is one of the main reasons companies are regaining their enthusiasm for spin-offs, says Carsten Stendevad of Citigroup.

ECONOMIST: Breaking up companies is back in fashion

Although the capital markets are now open to more or less any firm, they are far more favourable to those that were already in relatively good financial health, says Carsten Stendevad of the financial-strategy arm of Citigroup.

ECONOMIST: Corporate finance