Feeds

Big Mike heading for victory as SAM dumps HALF its Dell shares

Carl Icahn's just put $1.5bn into Apple... have they lost interest in Mickey D's firm?

Build a business case: developing custom apps

One of Dell’s biggest shareholders has dumped almost half its holdings in Big Mike’s computer outfit.

Southeastern Asset Management is reported to have sold 41 per cent of its Dell stock, reducing the value of its holdings to $949m.

Southeastern had held 8.4 per cent of Dell, making it the biggest stockholder apart from Michael Dell.

There’s no word on why Southeastern sold, but the news should be seen as significant.

Southeastern had been teaming up with Carl Icahn - who has just poured $1.5bn into Apple - to buy out Michael Dell and keep the PC and server company public.

The fund had opposed the proposed $24.4bn takeover of Dell by the company's founder, Silver Lake Partners, Microsoft and a slew of banks.

By early July, Team Dell had made it clear they were not going to offer shareholders any more money to take the company private.

They’d proposed $13.65 per share, while Icahn and Southeastern had offered $14. Shareholders were expected to vote on the deal on 18 July, which was then postponed to 24 July and finally set for 12 September, the fourth time the vote has been scheduled.

Icahn has since sued the Dell board for changing voting requirements.

Southeastern is a shrewd mover and selling half the stock suggests the company either knows something or is taking a fatalist line about its prospects for success.

It was Southeastern that upped its stake in Sun Microsystems to 21.6 per cent in October 2008, and then leveraged its position to get its own reps on the board.

From that point, Southeastern manoeuvred to get Sun sold – to Oracle.

At the time, Southeastern said it had wanted to have Sun's "true economic value realised". The end result was a sale to Oracle in 2010 for $7.4bn.

With Southeastern relinquishing half its leverage in Dell, it would seem the investor senses its Dell bid can go no further. ®

The essential guide to IT transformation

More from The Register

next story
Microsoft exits climate denier lobby group
ALEC will have to do without Redmond, it seems
Caught red-handed: UK cops, PCSOs, specials behaving badly… on social media
No Mr Fuzz, don't ask a crime victim to be your pal on Facebook
Barnes & Noble: Swallow a Samsung Nook tablet, please ... pretty please
Novelslab finally on sale with ($199 - $20) price tag
Ballmer leaves Microsoft board to spend more time with his b-balls
From Clippy to Clippers: Hi, I see you're running an NBA team now ...
Kate Bush: Don't make me HAVE CONTACT with your iPHONE
Can't face sea of wobbling fondle implements. What happened to lighters, eh?
Video of US journalist 'beheading' pulled from social media
Yanked footage featured British-accented attacker and US journo James Foley
True fact: 1 in 4 Brits are now TERRORISTS
YouGov poll reveals terrible truth about the enemy within
Assange™: Hey world, I'M STILL HERE, ignore that Snowden guy
Press conference: ME ME ME ME ME ME ME (cont'd pg 94)
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
7 Elements of Radically Simple OS Migration
Avoid the typical headaches of OS migration during your next project by learning about 7 elements of radically simple OS migration.
BYOD's dark side: Data protection
An endpoint data protection solution that adds value to the user and the organization so it can protect itself from data loss as well as leverage corporate data.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?