logo
Share SHARE
FONT-SIZE Plus   Neg

Yacktman Asset Supports Icahn/Southeastern Proposal For Dell - Quick Facts

Yacktman Asset Management said that it supports the proposal on Dell Inc. (DELL) put forth by Carl Icahn/Southeastern Asset Management due to certain reasons.

The reasons are: Yacktman believe that Dell has historically made numerous poor capital allocation decisions. Yacktman said it fearful that current management could continue this course. A change in the board of directors could significantly improve this and other issues and lead to enhanced shareholder value.

Yacktman said it believes Dell's stock price is currently being held back by the Dell/Silver Lake proposal. Since October 31, 2012, Dell's stock is up just over 40% while Hewlett Packard's stock , is up just over 80%. Given current market conditions and comparable opportunities, the Dell/Silver Lake proposal is inadequate.

Yacktman also said the Icahn/Southeastern proposal allows for individual shareholder choice while the Dell/Silver Lake proposal does not. Shareholders who view the Dell/Silver Lake offer as adequate can sell at prices that exceed the Dell/Silver Lake proposal while shareholders who see further upside in Dell can continue to hold their position in the company.

According to the Yacktman Investment Team, "The current Dell board of directors, which has failed to protect its shareholders from poor capital allocation decisions in the past, is now recommending that shareholders vote to approve this transaction. Based on this history and the current terms of the Dell/Silver Lake proposal, we therefore do not support the Dell board's recommendation that shareholders vote to approve this transaction. Instead, we are putting our support behind the Icahn/Southeastern proposal and the opportunity for positive change."

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Quick Facts

Editors Pick
Burger King has introduced a donut burger in Israel to celebrate the Jewish festival of Hanukkah. The burger will be called the SufganiKing, a play on the Hebrew word for donut, which is sufganiyot. The burger will be sold for about $4. Ciena Corp., a provider of communications networking solutions, on Thursday reported a turnaround to profit in the fourth quarter on higher revenues and lower expenses. However results for the quarter missed analysts' estimates. Looking ahead, the company forecast revenue for the first quarter of fiscal 2017 in line with analysts' expectations. Wearable fitness device maker Fitbit Inc. said it has acquired the assets of struggling smartwatch startup Pebble, including key personnel and intellectual property related to software and firmware development. The acquisition excludes Pebble's hardware products. Financial terms of the deal were not disclosed.
comments powered by Disqus
Follow RTT