Southeastern Asset Management, which is one of the country?s largest mutual fund managers, announced that it opposes Dell?s planned $24.4 billion sale Tuesday. T. Rowe Price, another Dell investor, also said that it would launch a campaign to fight the deal.
Southeastern Asset Management, which is the second biggest shareholder of Dell, disclosed in a regulatory filing that it got D.F. King as an adviser. D.F. King is a proxy solicitation company. Southeastern Asset Management also said that it held around 8.44 percent of Dell?s shares, which is second to Michael S. Dell?s shares in the company.
T. Rowe Price said in a statement that it is against the $13.65 per share takeover bid offered by the company?s founder. It has around 4.4 percent stake in Dell that makes it the company?s third biggest shareholder.
Proxy solicitors such as D.F. King play a vital role in battles over shareholder votes. They survey a company?s investor base and give their clients estimates of how shareholders are leaning and give strategies on winning over allies.
Aside from D.F. King, Southeastern also employed Dennis J. Block of Greenberg Traurig. Block is an experienced mergers and acquisition lawyer. This was according to a person with knowledge of the matter.
The announcement made by T. Rowe Price is the latest sign of discontent with management with regards to the buyout price. Dell controls 16 percent of the company?s stock but his offer for the stocks requires the approval of a majority of independent shareholders.
T. Rowe Price?s chairman and chief investment officer Brian C. Rogers said that his company believes the proposed buyout does not reflect the true value of Dell. He added that they don?t support the offer as it is at present.
Dell said that a special committee of the board had considered several strategic alternatives. The board came out with the conclusion that the proposed all-cash transaction in in the best interests of stockholders.
Source: http://www.paydayloansmag.com/big-investors-oppose-dell-deal/
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