Dell (DELL)’s shares fell modestly as the stock had been trading above the Dell Management takeover price and no new bidders appeared. We think the proposed management buyout is unattractive and are voting against it. Recently, we went on record supporting Carl Icahn and Southeastern Asset Management’s proposal to replace the board and offer a tender to shareholders who wish to sell.
Management at Dell has done a poor job at both business execution and capital allocation. It is sad that having frustrated investors with overpriced acquisitions, ill-timed share repurchase, poor corporate strategy and an accounting scandal that led to a settlement with the SEC, management jumped in to purchase the entire company, with the stock not far from a recent low. We believe other outside proposals would be of much greater benefit to shareholders. We recommend others reject the acquisition proposal and support the Icahn/Southeastern proposal.
From Donald Yacktman's second quarter 2013 commentary.