Southeastern Comments On Dell Earnings Ahead of Shareholder Vote

"Southeastern has reviewed Dell's fiscal second quarter earnings results and we are once again encouraged by the strong performance of the Enterprise Solutions, Software and Services business. Dell generated nearly $0.83 per share ($1.5 billion) of free cash flow during the quarter and approximately $2.22 per share of free cash flow over the trailing 12 months, despite its strategy of sacrificing margins for market share. Stockholders should note that this additional $0.83 per share in cash, which is far greater than the $0.13 special dividend being funded off Dell's balance sheet, results in an immediate accrual of $0.70 per share in value to the buyout group. This further supports our belief that the Michael Dell/Silver Lake freeze-out transaction drastically undervalues the business and its future prospects."