September 2018 Starboard Value picks up 500$ million stake in the company when the share price is around 18$ to 19$ . They get a buy in right to the board and arm twist the board to seats mainly to have voting rights .
Considering they are getting 12$ a piece Div back this itself is a near 70% ROI - the acquisition be Broadcom has pushed the share to 24$ a piece which is another 30 to 40% ROI so this has worked out ver well for STARBOARD they get a cool 100% ROI all within no time. After the Div is paid out they continue to milk the cow and will make another 100% on their 500 million . Then they will push the company for sale at 18 to 19 $ a piece and there you go .. another 100% . This how the math works folks ! They are making a k–ling of 300% on their 500 million hack into SYM. To execute this kind of a deal you need ruthless people and that’s where the two CEO’s figure ( interim + current )
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Exactly my point.
@12bemqQ9-ldd because FAANG are not as dysfunctional as SYMC and $500m doesn't get you sh– nevermind a seat on the board.
One would ask why Starboard does not do this to FAANG and Microsoft
Haven’t you heard about the 1.6 billion$ share buy back authorisation by the board ? That will boost the share price to above 25$ a piece post dividend
My math is this. Buy at $18, get $12 dividend, sell stock at post dividend $12 reprice. Net is $6 ($12+$12-$18) on $18 investment or a 33% return. Even if post dividend sale is at $18, then the net is $12 ($12+!8-$18) on $18 investment of 66% return. Still outstanding, but nowhere near the so-called 300% figure.