Who's Getting a Dell?

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July 18 (Bloomberg) -- Yacktman Asset Management Portfolio Manager Jason Subotky discusses the delay in Dell's shareholder vote with Erik Schatzker on Bloomberg Television's "Market Makers." (Source: Bloomberg)

Owns nearly 15 million shares of dell.

How do you feel none of the vote has been delayed?

It is a great thing and a loud message from shareholders.

They think the price is insufficient.

It is an unfortunate part of the process that you don't have a vote today come up which would send it down the transaction.

What does this postponement say about dell and silverlake and the special committee of the board?

Are they unwilling to raise their offer and want to spend the next six days canvassing shareholders and loving shareholders in trying to persuade those that are on the bubble for those in favor of $13.65 or perhaps something else?

They just don't have the votes.

We looked on the list of major shareholders who have reported they are not in favor of the transaction at this price, it is pretty extraordinary.

I think it is a matter of the prices are insufficient.

It was back in january when the deal came on the table and stocks are absence january.

It is a worse deal than it was back then.

If they counted heads and they don't have the votes, why even hold a meeting at all?

Why not pick it up a table and let the market decide what happens next?

There are going to be a lot of arm twisting.

They are going to be pounding on shareholders to change votes and get people to vote.

It is a set process that there is this much control from the corporation when they're trying to take their own company private, that they just have this much influence on the process.

It is part of the process.

Talk about what is happening behind the scenes at what you have experienced in terms of the arm twisting in the last 48 hours and what you expect now that the vote has been delayed.

We have been pretty clear in our message.

We have not gotten dozens of phone calls.

I am sure that people who have less of a definitive valuation in mind and are more short-term oriented, i'm sure they're getting heavily pressured.

From the reports you read, there are people that have been sort of flipping their vote in the last 20 four hours.

What ultimately do you want to see happen?

Do you want to see michael dell and silverlake step up with a higher offer because you believe they are the best people to run the company or do you wanted to get taken out at a higher price?

Do you believe that carl icahn has something practical of his sleeve, that there is more to carl icahn then 14 dollars and this mysterious war and that is closer to ken at $20 a share.

Do you have someone in mind that can run this company better than michael dell?

We are very supportive of carl icahn's position we bought our shares in the last year, we kept the position small because the capital allocation of the company had been horrific over the last four or five years.

Overspending on deals, overspending on share purchase, forster achieved decisions.

-- poor strategy decisions.

We think there is a lot of value.

We would like to see the be able to go in and get that done.

Given the way that the special committee has behaved, we would like to see changes in the board of directors.

You believe in the business model of dell and you think it is a question of management and board leadership?

You are not concerned about the slump in sales and all the financial signals we have gotten from dell?

We like to say at her firm it is about the.

We think the valuation for the cash flow the business can generate is attractive.

Dell is not a pc story as much as an enterprise story.

They hasn't a lot of money to transform the business.

We think think overspending.

There is value there.

We think there is a lot more value in the current share price.

We would like to seeing over time how the business can be run, especially if it is run effectively and more cash flow.

Stop overpaying for deals and for the business for cash.

I think shareholders can get a good return for this.

If not michael dell, who could or should run this company?

When you said you'd like to see new people on the board, who?

There is a site that has been proposed by carl icahn and i think there are good candidates there.

I think equally there are tremendous number of management candidates which the board will fervently that -- appropriately vet.

Where are the tremendous number of candidates?

Hp searched high and low ended up with meg whitman.

She is having success but is not like it is a slamdunk.

There are not a lot of people that can run a company like hp and make a go of it.

There are really good, core business people.

One of the challenges, you often have these entrenched founders.

Their capital allocation skills are messy.

We are not looking for someone to transform the business.

We are looking for someone to return investments for shareholders and the best wood to allocate capital over time.

I think the good capital alligators will make good business decision.

You are seeing that with meg whitman at hp.

She is doing a very good job.

We are also shareholders of a tree.

I think there are a large number of candidates that will be very focused.

You look at tyco.

He did a terrific job.

There are a love of good, solid business people.

It is not necessarily take a technology person to run the business.

Siding with carl icahn.

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


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