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Southeastern Asset Management, Dell's (DELL) largest independent shareholder with a 7.5% stake,...

Southeastern Asset Management, Dell's (DELL) largest independent shareholder with a 7.5% stake, reportedly believes that the $24.4B buyout undervalues the company. Southeastern's dissatisfaction adds to that of other shareholders such as Alpine Capital Research and Schneider Capital Management, who have said they'll vote against the deal.
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Comments (9)
  • Ed's perspective
    , contributor
    Comments (262) | Send Message
     
    QUESTION: Since its an institutional size/scale deal, rather than a haggle over the immediate take out price, is there an opportunity for SAM if they LIKE the company so much to become part of the PRIVATE transaction and benefit from the long term outcome?

     

    They know value well, they seem to indicate that the company will ultimately be valued better in the future, the company wants to take advantage of TODAY's price. The price today is unfortunately for SAM .... the price. You can SAY it is worth more but in the end nobody else in the market is paying up so the argument falls to insider collusion of price on the offer. The so called due diligence opinions / fair value opinion by all the investment banks are all intellectually questionalbe. < see mortgage products!>. MY guess is they move the deal up 75 cents as a token gesture to get rid of the issue.
    8 Feb 2013, 07:33 AM Reply Like
  • J Mintzmyer
    , contributor
    Comments (3675) | Send Message
     
    I personally hope the whole deal goes up in flames so $DELL drops below $10 again and I can get back into my position.

     

    I got into Dell in November, and I'm unhappy with the takeover... I saw 100%+ gains in this company.
    8 Feb 2013, 08:23 AM Reply Like
  • Ashraf Eassa
    , contributor
    Comments (9081) | Send Message
     
    Lol, you made 40% in a few months...
    8 Feb 2013, 09:48 AM Reply Like
  • J Mintzmyer
    , contributor
    Comments (3675) | Send Message
     
    Good point Ashraf-- I'm very happy with the gains.

     

    I'm not happy with buying a stock for $9 that's worth potentially $20 and then getting cashed out.

     

    Would you be happy if NVDA went private at $15-$16 next week?
    3 Mar 2013, 04:14 PM Reply Like
  • Ashraf Eassa
    , contributor
    Comments (9081) | Send Message
     
    J. Mintzmyer,

     

    I personally wouldn't mind since I'd make quite a bit of money in that case ;)
    3 Mar 2013, 08:38 PM Reply Like
  • J Mintzmyer
    , contributor
    Comments (3675) | Send Message
     
    Ashraf-- perhaps a better example would be if INTC continued dropping and hit around $15, then INTC got taken private for $22.

     

    Outrageous right? I'm not sure where you stand on INTC, but I think it's worth at least $30.

     

    Now INTC has a much bigger 'moat' and overall fundamentals, but the comparison to the size of drop and takeover/intrinsic is pretty similar I believe.
    4 Mar 2013, 08:19 AM Reply Like
  • Ashraf Eassa
    , contributor
    Comments (9081) | Send Message
     
    "Outrageous right? I'm not sure where you stand on INTC, but I think it's worth at least $30."

     

    Intel is the stock I write most frequently about...!
    4 Mar 2013, 10:38 AM Reply Like
  • J Mintzmyer
    , contributor
    Comments (3675) | Send Message
     
    Ashraf-- I beg your pardon for the misunderstanding-- I meant where you stand in terms of exact PT. I had previously assumed you thought NVDA was worth much more than $15-$16.

     

    On a side note, I had a constructive talk with a guy who was 'mad' Buffet 'deprived' him of HNZ stock.

     

    I understand why you are saying: "J-- take your nearly 50%!" But there's a difference between HNZ and DELL with valuations.

     

    Take $BBY- I have a PT of $30-- you might call that insane-- but imagine if $BBY had been taken private for $16 during the worst (Nov/Dec). It's only a 40-50% gain for the extremely lucky. I was one of the extremely lucky to time $DELL correctly.
    4 Mar 2013, 04:52 PM Reply Like
  • blueice
    , contributor
    Comments (3436) | Send Message
     
    MD, is going to have to add a couple of bucks to get the deal done...

     

    All shareholders should not tender their stocks...
    8 Feb 2013, 10:26 AM Reply Like
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