Quick Facts
FONT-SIZE Plus   Neg
Share SHARE

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

Yacktman Asset Management said that it supports the proposal on Dell Inc. (DELL: Quote) 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."

Register
To receive FREE breaking news email alerts for Dell Inc. and others in your portfolio

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Quick Facts

Editors Pick
Computer and printer maker Hewlett-Packard Co. said Tuesday after the markets closed that its fourth quarter profit fell 6% from last year, as revenue declined 2%. The company's quarterly earnings per share, excluding items, came in line with analysts' expectations, but its quarterly revenue fell short of analysts' forecast. This organic and natural products company has experienced strong compounded annual growth over the last four fiscal years with its net sales growing 25% and adjusted income from continuing operations over 30%. Here is a quick summary of the earnings reported after the bell on Nov. 24. 1. Amira Nature Foods Ltd (ANFI) reported net income for the second quarter of $8.3 million or $0.29 per share, compared to $5.0 million or $0.18 per share for the year-ago quarter. Excluding items, adjusted earnings...
comments powered by Disqus
FREE Newsletters, Analysis & Alerts

 

Stay informed with our FREE daily Newsletters and real-time breaking News Alerts. Sign up to receive the latest information on business news, health, technology, biotech, market analysis, currency trading and more.