3 Ways Sybase Could Improve Shareholder Value

Sybase (SY) shares gained ground Friday after Sandell Asset Management announced that it has taken a 6% stake in the company and is asking the company to take steps to improve shareholder value.

Sandell said in a press release that it sees several steps the company could take:

• Buyback stock. In particular it proposes a $500 million Dutch tender at a premium to the market price.
• IPO of the company’s mobility segment, with spin-off of remaining shares to SY holders.
• Sales of the company in whole or part.

Sandell CEO Thomas Sandell said in the release that he thinks the company could eventually be worth $39 a share. He also said that if the company does not act, he would consider “changes at the board level to be warranted.”

This is a busy week for Sandell, by the way. Earlier this week, the firm agreed to pay more than $8 million to settle SEC charges of “engaging in improper short sales in connection with trading in the securities of Hibernia Corporation in the immediate aftermath of Hurricane Katrina.”

SY 1-yr chart: