Sandell Seeks Value Maximization at Sybase
NEW YORK, Oct. 12 /PRNewswire/ -- Sandell Asset Management Corp. ("Sandell") sent a letter and a presentation today to Mr. John Chen, Chairman, President, and CEO of Sybase, Inc. ("Sybase" or the "Company") (NYSE: SY). 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 "Sybase has excellent products, strong market positions and significant cash flow, but trades at a significant discount to its software peers on virtually all valuation metrics. The board has a fiduciary duty to consider all options to maximize the value of these assets, and we challenge management and the board to present a plan to enhance value with low levels of risk. We are concerned that the company will use capital for risky and unnecessary acquisitions while there are several low-risk opportunities within the company to significantly improve value. We believe these actions could result in share price improvement up to $39 over time," said Thomas E. Sandell, Chief Executive Officer of Sandell Asset Management Corp. "We hope to continue to engage constructively with Sybase's management and board to improve the value for all shareholders. However, if management and the board prove unwilling to take any meaningful action, we would consider changes at the board level to be warranted." For further information, contact: Mr. Thomas E. Sandell, Chief Executive Officer Sandell Asset Management Corp. (212) 603-5700 About Sandell Asset Management Corp. Sandell Asset Management Corp. is a multi-billion dollar global investment management firm, founded by Thomas E. Sandell, that focuses on global corporate events and restructurings throughout North America, Continental Europe, the United Kingdom, Latin America and the Asia-Pacific theatres. Sandell frequently will take an "active involvement" in facilitating financial or organization improvements accruing to the benefit of investors. Disclaimer This release is for general informational purposes only. It does not have regard to the specific investment objective, financial situation, suitability, or the particular need of any specific person who may view it, and should not be taken as advice on the merits of any investment decision. The views expressed herein represent the opinions of Sandell and are based on or derived from publicly-available information and third party reports with respect to Sybase, Inc. ("the Issuer"). Sandell has not sought or obtained consent from any third party to use any statements or information as having been obtained or derived from statements made or published by third parties. Any such statements or information should not be viewed as indicating the support of such third party for the views expressed herein. No warranty is made that data or information, whether derived or obtained from publicly-available sources or from any third party, are accurate. Sandell shall not be responsible or have any liability for any misinformation contained in any publicly-available sources or third party report. There is no assurance or guarantee with respect to the prices at which any securities of the Issuer will trade, and such securities may not trade at prices that may be implied from this letter. Any estimates, projections and pro forma information set forth are based on assumptions that Sandell believes to be reasonable, but there can be no assurance or guarantee that actual results or performance of the Issuer will not differ, and such differences may be material. Sandell does not recommend the purchase or sale of any security. Under no circumstances is this letter to be used or considered an offer to sell or a solicitation of an offer to buy any security. Sandell currently holds shares of common stock of the Issuer. Sandell manages funds and accounts that are in the business of buying and selling public securities. It is possible that there will be developments in the future that cause Sandell from time to time to sell all or a portion of its shares in open market transactions or otherwise (including via short sales), buy additional shares (in open market or privately negotiated transactions or otherwise), or trade in options, puts, calls or other derivative instruments relating to such shares.
SOURCE Sandell Asset Management Corp.
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