Some Dell Shareholders Unhappy with "Lowball" Buyout Attempt
February 11, 2013 8:06 AM
comment(s) - last by
Dell CEO Michael Dell
Some shareholders want more $$$
Dell Inc. founder Michael Dell along with a consortium of partners has been working hard to
buy all outstanding shares
of Dell stock and take the company private. The current offer on the table from Dell and his partners is $13.65 per share according to sources. However, some shareholders believe that stock in the company is worth more than $20 per share.
reports that Harris Associates LP, Yacktman Asset Management, and Pzena Investment Management LLC have all banded together with Southeastern to object to the $24.4 billion buyout offer.
Harris Associates LP, Yacktman Asset Management, and Pzena Investment Management LLC together own a combined 3.3% of outstanding Dell stock. Southeastern owns 8.5% of Dell and believes that it shares are worth $24 each with the financial services division in recent acquisitions figured in.
"We are writing to express our extreme disappointment regarding the proposed go-private transaction, which we believe grossly undervalues the Company," Southeastern CEO Mason Hawkins and Chief Investment Officer Staley Cates wrote in a letter.
"We retain and intend to avail ourselves of all options at our disposal to oppose the proposed transaction, including but not limited to a proxy fight, litigation claims and any available Delaware statutory appraisal rights."
Southwestern believes that breaking up the company and selling units separately would be more beneficial to shareholders.
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RE: Currently trading at $13.63...
2/11/2013 10:18:15 PM
This is really simple. If you think the stock is worth $20 and it's currently selling for $13.63, then by your estimation the stock is vastly underpriced and
you buy all the shares you can
. You don't sit there complaining that someone else should be buying your shares for $20. If you're unwilling to buy my Dell shares for, say, $19, then obviously you don't think it's really worth $20.
RE: Currently trading at $13.63...
2/13/2013 9:08:00 AM
This pretty much sums it all up in a nutshell.
"Google fired a shot heard 'round the world, and now a second American company has answered the call to defend the rights of the Chinese people." -- Rep. Christopher H. Smith (R-N.J.)
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