Sandell Asset Management Corp. ("Sandell") sent a letter and a presentation to Mr. John Chen, Chairman, President, and CEO of Sybase, Inc.. Sandell also disclosed beneficial ownership of 6.0% of the shares of Sybase's common stock in a Schedule 13D filed with the Securities and Exchange Commission today. In the letter and presentation, Sandell stated its belief that Sybase's continued discounted valuation is unwarranted and urged management and the board to take immediate action to improve the Company's valuation. Specifically, Sandell outlined several low risk actions that it believes the board can take to improve the Company's valuation:
- Aggressive use of the balance sheet to repurchase shares – an immediate $500mm Dutch tender at a premium to the current market price, followed by aggressive buybacks over time
- IPO and spin-off 100% of the mobility segment -- an IPO of Sybase's mobility segment followed by a spin-off of the remaining interest to existing shareholders
- Sale of the company in whole or in part -- an evaluation of the company's strategic alternatives may indicate a sale is the most viable option
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