Guest wellmont Posted February 9, 2013 Share Posted February 9, 2013 i hope this doesn't go up too much monday morning. :) Link to comment Share on other sites More sharing options...
txlaw Posted February 11, 2013 Author Share Posted February 11, 2013 Article on SEAM's goal line stand: http://arstechnica.com/business/2013/02/dell-faces-goal-line-stand-by-angry-investors-in-bid-to-go-private/ Link to comment Share on other sites More sharing options...
Palantir Posted February 11, 2013 Share Posted February 11, 2013 Any of you shorting this? Link to comment Share on other sites More sharing options...
boilermaker75 Posted February 11, 2013 Share Posted February 11, 2013 Article on SEAM's goal line stand: http://arstechnica.com/business/2013/02/dell-faces-goal-line-stand-by-angry-investors-in-bid-to-go-private/ "In October, the company forced employees to sell many of their shares back to the company at $9.55 a share because of a policy that set the maximum amount of shares any employee could hold in their 401k plan—this, as the company was in the midst of negotiating a buyout deal." I know it is not, but that should be criminal. Link to comment Share on other sites More sharing options...
nwoodman Posted February 12, 2013 Share Posted February 12, 2013 "Jefferies analyst Peter Misek asserts in a research note late Monday (or early Tuesday, depends on your perspective) that the bid could be raised to $15 a share to appease the irritated masses. He thinks the buyout group could generate an IRR of 20%-23% at a $15 bid price – and that private equity investors (which is to say Silver Lake, in this case) would not likely accept a lower return than that". http://www.forbes.com/sites/ericsavitz/2013/02/12/dell-analyst-contends-lbo-group-could-up-bid-to-15shr/?partner=yahootix It would still be a steal but one we could live with ;) cheers nwoodman Link to comment Share on other sites More sharing options...
boilermaker75 Posted February 12, 2013 Share Posted February 12, 2013 DELL is currently trading at $13.74, $0.09 above Michael Dell's offer. Link to comment Share on other sites More sharing options...
fareastwarriors Posted February 13, 2013 Share Posted February 13, 2013 T. Rowe Price Opposes Dell Buyout . http://professional.wsj.com/article/SB10001424127887324880504578300090035992424.html?mod=WSJ_hp_LEFTWhatsNewsCollection On Tuesday, Dell's second-largest outside investor said it opposed the proposed $24.4 billion buyout. The investor, T. Rowe Price Group Inc., TROW +0.85%which owned 4.4% of Dell shares as of September, said the proposal undervalues Dell. "We do not intend to support the offer as put forward," Brian Rogers, T. Rowe Price's chairman and chief investment officer, said in a statement. ... Since then, Dell's largest outside investor, Southeastern Asset Management Inc., which said Tuesday it owns 8.4% of Dell's shares outstanding, has spoken out against the deal. Yacktman Asset Management President Donald Yacktman, whose funds own 0.9% of Dell shares, also on Tuesday declared the offer price "unacceptable." And Pzena Investment Management Inc., PZN +2.80%which owns about 0.8% of Dell shares, last week said it plans to oppose the deal. Bill Nygren, fund manager for two funds at Harris Associates LP that own Dell, has said he had been "hoping for a higher price," but didn't publicly state how he plans to vote. Harris owns about 1.7% of Dell, according to the most recent filings. All of that opposition, which represents roughly 15% of Dell's shares outstanding, isn't enough to block the deal. Mr. Dell and other insiders own about 16% of shares, meaning that those opposed to the deal need owners of 42% of all shares outstanding to oppose or abstain. ... Link to comment Share on other sites More sharing options...
boilermaker75 Posted February 13, 2013 Share Posted February 13, 2013 T. Rowe Price Opposes Dell Buyout . http://professional.wsj.com/article/SB10001424127887324880504578300090035992424.html?mod=WSJ_hp_LEFTWhatsNewsCollection On Tuesday, Dell's second-largest outside investor said it opposed the proposed $24.4 billion buyout. The investor, T. Rowe Price Group Inc., TROW +0.85%which owned 4.4% of Dell shares as of September, said the proposal undervalues Dell. "We do not intend to support the offer as put forward," Brian Rogers, T. Rowe Price's chairman and chief investment officer, said in a statement. ... Since then, Dell's largest outside investor, Southeastern Asset Management Inc., which said Tuesday it owns 8.4% of Dell's shares outstanding, has spoken out against the deal. Yacktman Asset Management President Donald Yacktman, whose funds own 0.9% of Dell shares, also on Tuesday declared the offer price "unacceptable." And Pzena Investment Management Inc., PZN +2.80%which owns about 0.8% of Dell shares, last week said it plans to oppose the deal. Bill Nygren, fund manager for two funds at Harris Associates LP that own Dell, has said he had been "hoping for a higher price," but didn't publicly state how he plans to vote. Harris owns about 1.7% of Dell, according to the most recent filings. All of that opposition, which represents roughly 15% of Dell's shares outstanding, isn't enough to block the deal. Mr. Dell and other insiders own about 16% of shares, meaning that those opposed to the deal need owners of 42% of all shares outstanding to oppose or abstain. ... Boilermaker75 will add his 0.000092% of the outstanding shares to the opposition. Link to comment Share on other sites More sharing options...
zippy1 Posted February 13, 2013 Share Posted February 13, 2013 If the board of directors accept an offer that is lower than the market price, wouldn't it invite lawsuits directed at these directors personally? Also, if market price is higher than the offering price by Michael Dell, wouldn't they lose money just like R. Rowe Price and Southeastern? Also, I am wondering whether in this case they would cash out now or they will stay and also fight for a higher price? Any comment? Link to comment Share on other sites More sharing options...
boilermaker75 Posted February 13, 2013 Share Posted February 13, 2013 If the board of directors accept an offer that is lower than the market price, wouldn't it invite lawsuits directed at these directors personally? Also, if market price is higher than the offering price by Michael Dell, wouldn't they lose money just like R. Rowe Price and Southeastern? Also, I am wondering whether in this case they would cash out now or they will stay and also fight for a higher price? Any comment? I would think everyone who held there shares at the close today, which would result in a loss if the LBO occurs at $13.65, believe the final price will be much higher than $13.65. Link to comment Share on other sites More sharing options...
Guest wellmont Posted February 13, 2013 Share Posted February 13, 2013 If the board of directors accept an offer that is lower than the market price, wouldn't it invite lawsuits directed at these directors personally? Also, if market price is higher than the offering price by Michael Dell, wouldn't they lose money just like R. Rowe Price and Southeastern? Also, I am wondering whether in this case they would cash out now or they will stay and also fight for a higher price? Any comment? the directors have already approved the deal. the shareholders now need to approve it. the reason it is over the buyout price today is because of Speculation. the directors can not be held responsible for what speculators do. SEAM thinks the stock is worth over $20. It would be silly for them to sell the stock at $13.70 to capture a few pennies of value. They will fight to the end for a higher offer. In fact I believe SEAM is a buyer at this level. Link to comment Share on other sites More sharing options...
zippy1 Posted February 13, 2013 Share Posted February 13, 2013 If the board of directors accept an offer that is lower than the market price, wouldn't it invite lawsuits directed at these directors personally? Also, if market price is higher than the offering price by Michael Dell, wouldn't they lose money just like R. Rowe Price and Southeastern? Also, I am wondering whether in this case they would cash out now or they will stay and also fight for a higher price? Any comment? the directors have already approved the deal. the shareholders now need to approve it. the reason it is over the buyout price today is because of Speculation. the directors can not be held responsible for what speculators do. SEAM thinks the stock is worth over $20. It would be silly for them to sell the stock at $13.70 to capture a few pennies of value. They will fight to the end for a higher offer. In fact I believe SEAM is a buyer at this level. Thanks, Wellmont and boiler! So SEAM probably should be talking to others such as Pzena to buy more so that they can become majority of the minority shareholders? Link to comment Share on other sites More sharing options...
Palantir Posted February 13, 2013 Share Posted February 13, 2013 So if you short this, there is not much of a potential loss right? Because for Dell to go at a higher price, the offer must fall through first? Link to comment Share on other sites More sharing options...
ItsAValueTrap Posted February 13, 2013 Share Posted February 13, 2013 If the deal falls apart, the stock can trade higher than the takeover price. This is what happened to Potash when BHP's bid was blocked on regulatory grounds. If somebody else bids on Dell, Dell can trade at a higher price. It doesn't even matter who ends up eventually buying Dell. So if you short this, there is not much of a potential loss right? ...no... Link to comment Share on other sites More sharing options...
alwaysinvert Posted February 13, 2013 Share Posted February 13, 2013 Don't forget the dividend. Everything above $13.65 is not speculation. Link to comment Share on other sites More sharing options...
Guest hellsten Posted February 13, 2013 Share Posted February 13, 2013 Damodaran on the deal: http://aswathdamodaran.blogspot.ca/2013/02/michael-dells-conflicted-buyout.html Here is my sense of this deal. At $13.65/share, Michael Dell is probably getting a bargain, but I don't think it is a huge one. As a consequence, it is going to be difficult to find another buyer who will offer a significant premium over the buyout price. I also think that Dell's depleted value today is a consequence of Michael Dell's management over the last few years and it bothers me that he will be benefiting as a result of his own mistakes. If nothing else, as a Dell stockholder, I would like an honest admission from Michael Dell that the wreckage at Dell is not the market's fault but his own, and a couple of dollars more per share on the buyout price will soothe my pain a little. Link to comment Share on other sites More sharing options...
boilermaker75 Posted February 13, 2013 Share Posted February 13, 2013 Don't forget the dividend. Everything above $13.65 is not speculation. True but about $0.06 plus the normal amount of risk premium that would be there. Link to comment Share on other sites More sharing options...
txlaw Posted February 14, 2013 Author Share Posted February 14, 2013 http://www.bloomberg.com/news/2013-02-14/dell-said-to-plan-shareholder-meetings-to-assess-demands-for-lbo.html While Dell and Silver Lake weren’t surprised by Southeastern’s response to the buyout, they were caught off guard by how quickly T. Rowe Price and others voiced opposition to the deal, one of the people familiar with the situation said. Dell and Silver Lake are evaluating a public response because they want to halt Southeastern’s momentum, said this person. Maybe SEAM should call up Larry Ellison and see if he'd be interested in doing a stock-based transaction for DELL. Link to comment Share on other sites More sharing options...
Phaceliacapital Posted February 21, 2013 Share Posted February 21, 2013 Just wondering for any of you guys their 2 cents on their existing bonds, worth a buy? The 2040 seems like an interesting one to add to our fixed income pf here. I am still somewhat prudent though, anyone who can shed light on typically process what happens to listed bonds turing takeover? I read that most often 1) Only the more ST are rolled over 2) Existing LT debt will probably be subordinated to new debt 3) leverage ratios increase significantly (surprise surprise) 4) Check 2040 bond prospectus I assume 5) Check callability? I am going to investigate this but will regularly check whether you guys have shed any light :) What do I have to look for? I have no problems doing my own research but any help, or direction is greatly appreciated, thanks! Link to comment Share on other sites More sharing options...
ourkid8 Posted February 23, 2013 Share Posted February 23, 2013 I just sold out of my position at $14/share (2.6% over buyout) and will now be watching from the sidelines... I will be using part of he proceeds to buy another slug of AIG warrants. S Link to comment Share on other sites More sharing options...
Guest valueInv Posted March 4, 2013 Share Posted March 4, 2013 And this is why the Dell MoS is weaker than most people think: http://gigaom.com/2013/03/01/other-server-brands-show-strong-growth-thanks-to-webscale-companies/ Not only is their client business declining, their server business is under attack also. Link to comment Share on other sites More sharing options...
fareastwarriors Posted March 5, 2013 Share Posted March 5, 2013 Still-Unhappy Southeastern Seeks Dell Shareholder List It appears that despite Dell Inc.’s efforts to the contrary, Southeastern Asset Management remains unconvinced that the computer maker’s $24.4 billion sale to its founder is the last best hope for shareholders. In a letter to the company’s board, Southeastern reiterated its belief that the take-private transaction denied investors the full benefits of Dell’s turnaround. To that end, Southeastern said that it was seeking a full investor list from the company, as well as other books and records. A number of other investors, including T. Rowe Price, have publicly said they oppose the sale to Michael S. Dell and the investment firm Silver Lake, deeming the group’s $13.65-a-share offer too low. Southeastern has suggested that a better alternative is for Dell to pay out a special $12-a-share dividend, paid for by bringing back overseas cash, selling off Dell Financial Services and raising $9 billion in new debt. Southeastern cited Dell’s willingness now to bring home some of the company’s substantial cash hoard that is currently held overseas. The firm also took issue with Dell management for not providing financial results for its product segments, in what Southeastern argued was an attempt to mask Dell’s improving business mix. Had the computer company broken out its results in this way, Southeastern said, the data might reflect the lessening importance of Dell’s struggling PC business and the growth of its enterprise arm. “While the board of directors characterizes the proposed transaction as a transfer of ‘the risk of the business to the buyout group,’ we believe it is more appropriately characterized as a transfer of ‘the opportunity of the business to the buyout group,’” Southeastern wrote in the letter. “Management knows the company better than anyone, and clearly sees Dell’s substantial unrealized value.” . http://dealbook.nytimes.com/2013/03/05/southeastern-seeks-dell-shareholder-list/ Link to comment Share on other sites More sharing options...
Guest wellmont Posted March 5, 2013 Share Posted March 5, 2013 And this is why the Dell MoS is weaker than most people think: http://gigaom.com/2013/03/01/other-server-brands-show-strong-growth-thanks-to-webscale-companies/ Not only is their client business declining, their server business is under attack also. yet michael dell wants to go all in. sometimes it's better to watch insiders than read trade journals. Link to comment Share on other sites More sharing options...
Guest valueInv Posted March 5, 2013 Share Posted March 5, 2013 And this is why the Dell MoS is weaker than most people think: http://gigaom.com/2013/03/01/other-server-brands-show-strong-growth-thanks-to-webscale-companies/ Not only is their client business declining, their server business is under attack also. yet michael dell wants to go all in. sometimes it's better to watch insiders than read trade journals. And sometimes it's not. His track record with the turn around isn't exactly inspiring. Link to comment Share on other sites More sharing options...
Palantir Posted March 5, 2013 Share Posted March 5, 2013 ValueInv is probably reminiscing about the time when MD told the world that Apple should liquidate and return cash to shareholders. Link to comment Share on other sites More sharing options...
Recommended Posts
Create an account or sign in to comment
You need to be a member in order to leave a comment
Create an account
Sign up for a new account in our community. It's easy!
Register a new accountSign in
Already have an account? Sign in here.
Sign In Now