A breakup of Oil States International, Inc. (NYSE:OIS) has some potential to increase shareholder value. For example, one of the company’s business units provides temporary housing to workers in extraction industries (including mining and oil and gas) and could be eligible to convert to a real estate investment trust (which would then enable it to receive preferential tax treatment as long as it distributed sufficient cash to shareholders). In addition, management of the new companies is often able to better manage operations without having to concern themselves with the needs of the larger organization (read more about spinouts). It’s also possible that at least one of the smaller business units would be acquired by a strategic at a premium valuation.