T. Rowe Price says will not support Dell buyout

Tue Feb 12, 2013 11:41pm IST

Related Topics

Stocks

   
Priyanka Gandhi Vadra, daughter of Congress party chief Sonia Gandhi, adjusts her flower garlands as she campaigns for her mother during an election meeting at Rae Bareli in Uttar Pradesh April 22, 2014. REUTERS/Pawan Kumar

Election 2014

More than 814 million people — a number larger than the population of Europe — are eligible to vote in the world’s biggest democratic exercise.  Full Coverage 

REUTERS - Money manager T. Rowe Price Group on Tuesday became the latest major shareholder of computer maker Dell to oppose Dell's leveraged buyout offer.

"We believe the proposed buyout does not reflect the value of Dell, and we do not intend to support the offer as put forward," T. Rowe Chief Investment Officer Brian Rogers said in a statement.

T. Rowe's decision to oppose the $13.65 per share offer from Dell founder Michael Dell and private equity shop Silver Lake Partners could add significant pressure for a higher offer. T. Rowe controlled 4.4 percent of Dell shares as of September 30, according to Thomson Reuters data.

Other shareholders with an estimated total stake of 14 percent are also opposing or leaning against the deal.

Shares of Dell traded above the offer price to $13.80, up 0.76 percent on the day, after the T. Rowe Price announcement.

On Friday, Southeastern Asset Management, with an 8.5 percent stake, said in a securities filing that it would vote against the deal. Three other major shareholders are also expected to oppose the offer, sources have told Reuters.

(Reporting by Aaron Pressman and Tim McLaughlin; editing by Lisa Von Ahn, G Crosse)

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

Internet Constitution

REUTERS SHOWCASE

Case Dismissed

Case Dismissed

U.S. judge dismisses case against Twitter alleging pre-IPO fraud.  Full Article 

Online Film Release

Online Film Release

'Avengers' director Joss Whedon releases new film online.  Full Article 

China Censorship

China Censorship

Bland Theft Auto: China censorship weighs on games consoles.  Full Article 

Twitter Case

Twitter Case

U.S. judge dismisses case against Twitter alleging pre-IPO fraud.  Full Article 

High Charges

High Charges

Netflix plans to raise prices as U.S. streaming subscribers grow.  Full Article 

Railgun Ready

Railgun Ready

Video: US Navy's "warfighter game-changer" railgun set for sea tests.  Video 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage