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Early Movers for Monday Feb. 11, 2013
Posted by: earningsyield (IP Logged)
Date: February 11, 2013 11:14AM
With the Dow near 14,000, U.S. equity markets hope to continue their upward trend with the euro zone once again having an impact on equity markets around the globe.
One of the companies making headlines over the weekend includes computer maker Dell Inc. (DELL) as opposition grows over its $24.4 billion buyout attempt by company founder Michael Dell and private equity group SIlver Lake Partners. Leading the opposition is Southeastern Asset Management which is spearheaded by value investor Mason Hawkins and is now being joined by Harris Associates, Donald Yacktman’s Yacktman Asset Management and Richard Pzena’s Pzena Investment Management. Combined, these firms hold about 11% of Dell outstanding stock, with Southeastern being the largest as it holds 8.5% of the total shares outstanding. In a letter to Dell’s board of directors, which can be found in a filing with the Securities and Exchange Commission (SEC), Southeastern lays out its case as to why Dell may be worth as much as $24 a share. The way the stars are lining up, it is not going to be easy for Michael Dell and Silver Lake.
“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 (source).”
Shares of Apple (AAPL) seem to be headed in the right direction again as speculation is growing that the company is testing a device with a watch-like design that would run on its iOS platform. While not a huge mover, shares are up more than 5% after trading below $450 and prompted investors like Greenlight Capital’s David Einhorn to put its $100 billion cash hoard to use. Other notable Gurus who have purchased shares of Apple include Third Point’s Daniel Loeb and T2 Partners' Whitney Tilson. Apple (AAPL) currently represents 9.4% of Third Point’s portfolio with the latest purchase having an impact of 3%
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