Letter

Southeastern Asset Management's letter to the Dell board (February 2013)

Mason Hawkins, Staley Cates · 2013

A worked sum-of-the-parts valuation and leveraged recapitalisation case from a large holder opposing a management-backed buyout, directly relevant to take-private and fairness analysis.

• Valuation
• Activism and governance
• Deals and M&A

1 idea from this letter

• TechniqueValuation located

  A sum of the parts shows what a take-private bid is paying nothing for

  Value each part a bidder is acquiring; what the bid leaves at zero is the argument against it.

  Take-private analysis, fairness opinions, conglomerate valuation and any activist defence of a holding.