We Still Oppose Michael Dell Offer: Subotsky

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July 18 (Bloomberg) -- Yacktman Asset Management Portfolio Manager Jason Subotky discusses Michael Dell's and Silver Lake Management LLC's sweetened proposal to buy Dell with Sara Eisen on Bloomberg Television's "Market Makers." (Source: Bloomberg)

Believed for quite some time there is much more value here than the price you are talking about.

What are you expecting carl icahn and southeastern to come out and say?

Fax i think everybody will say something similar, which is it's past time for a vote.

Let's have a vote.

Did michael dell answer over lake -- did michael dell and silverlake reach out to you?

We have not spoken to anybody at dell as of this time to read even at 14 come you're not satisfied.

Is there a number that would win you over in terms of taking this company private?

We always say it's almost all about the price.

There is a price at which we would move, but it's not anywhere near the price they are throwing out of $14. what is it?

We would not disclose that to the public, but there is always a price at which you would be willing to do something.

But we have said for quite some time that we think the company is worth more and we want to continue to be shareholders of the company.

We would like to put the vote to the end and have people focus on customers and business and not just extending a vote.

What part of the company is being undervalued by michael dell and silverlake?

The enterprise portion of the business, the software acquisitions they have done, we think there is significant value.

Valuations, people can shift them all around but the shareholders by the fact you are passing these second opportunities to take a vote on it have a well spoken.

They don't prefer this or postal.

What if michael dell and silverlake at the rules change and that would show support in their favor.

What would you do then?

Rex we -- we are subject to what happens in the voting process.

I don't see it as a rational outcome, that fiduciary, which is tasked to represent shareholders like us, would see that a voting change at this point in the process for a minimal change in price would be representing shareholders fairly.

I think you have seen from shareholders consistently that it's very, very difficult for shareholders to turn down a buyout proposal.

There are very few they get turned down and this one has not passed -- they extended the vote the first time and you are seeing a second extension of the vote.

Clearly the votes aren't there and shareholders should be allowed to keep their positions to see if their valuation methodology proves to be right over the long term.

One chart that i found striking is how the shares have performed your to date compared to hewlett-packard.

Dell certainly got a bump up on the initial bid for michael dell, but since then, hewlett- packard has outperformed dell and is up i 83% this year versus a 28% gain in dell.

What is hp doing right that could be a model for dell?

We are shareholders of hp as well.

It's not lost on us remotely that the value in dell we think has been cap by the proposition , the proposal for the acquisition.

We think hp is just doing what it needs to, which is focused on generating a significant free cash flow and a focus on the businesses that have value and get out of the businesses that don't. it has been business 101. meg whitman has done a good job focusing on their business and generating free cash flow.

One of the challenges dell has had more recently is that management is very distracted by this potential transaction.

It could be argued that management is if you look at the share price.

This text has been automatically generated. It may not be 100% accurate.


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