Dell Investor to Fight Buyout

Southeastern Asset Management, the largest independent investor of Dell, said it would fight the buyout of the company.

If Southeastern pushes through with its opposition, it would be in battle with company founder Michael Dell and Silver Lake, the private equity firm that is buying out the company for US$13.65 per share.

Southeaster activist investor Mason Hawkins said Dell is worth $24 per share if several areas of the businesses are factored in. Hawkins owns some 8.5 percent of the company.

In a letter, Hawkins said the shareholders are expressing their extreme disappointment on the go-private transaction of Dell and Silver Lake. He also indicated that the shareholders are willing to exhaust all options to oppose the transaction.

The letter is also signed by Staley Cates, the company’s chief investment officer.

Because of the opposition of Southeastern, shareholders have also said they would vote against the deal. These shareholders hold some 11 percent of Dell shares. Michael Dell has some 16 percent stake.

Tony Sacconaghi, an investment analyst, said Hawkins may have paid at least $20 per share. If the deal with Silver Lake pushes through, Hawkins stands to lose at least US$285 million.