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
Microsoft Corp. (MSFT) Tuesday unveiled two new smartphones that run on its Windows 10 operating platform, as the software giant strives to revive its beleaguered smartphone business. The Lumia 950 and 950 XL are the first smartphones phones to run on Windows 10. Microsoft hopes that millions... General Mills Inc. (GIS) is voluntarily recalling 1.8 million boxes of "gluten-free" Cheerios and Honey Nut Cheerios manufactured at its Lodi, California facility, as it may contain wheat. Wheat was inadvertently mixed into the gluten free oat flour at its facility in Lodi, California. As a result,... Microsoft (MSFT) has unveiled its latest tablet. The technology giant officially debuted the new Surface Pro 4 at its Windows 10 event, held in New York City on Tuesday. The product, meant to draw customers away from laptops, includes a 12.3 inch screen, with a smaller bezel than its Pro 3 predecessor.
comments powered by Disqus
Follow RTT