Southeastern Asset Management, the Memphis-based firm which is the largest outside shareholder in Dell, has written a letter to the company’s board signaling Southeastern’s intent to fight the move to take Dell private.
As currently structured, Southeastern’s principals write, the deal “grossly undervalues” Dell.
“Southeastern Asset Management, Inc. beneficially owns on behalf of its investment advisory clients approximately 8.5 percent of Dell’s outstanding shares (including options), making us your largest outside shareholder. We are writing to express our extreme disappointment regarding the proposed go-private transaction, which we believe grossly undervalues the Company. We also write to inform you that we will not vote in favor of the proposed transaction as currently structured. We retain and intend to avail ourselves of all options at our disposal to oppose the proposed transaction, including but not limited to a proxy fight, litigation claims and any available Delaware statutory appraisal rights.”
Full letter at the link: http://www.longleafpartners.com/downloads/dell-board-letter.pdf