Southeastern Asset Management, Dell Inc.’s largest outside investor, exercised 25 million call options in the computer maker, giving it more shares to vote in the upcoming fight over the company’s future.
Meantime, Dell said its fiscal first-quarter earnings dropped 79 percent, missing analysts’ estimates.
Southeastern, which has an 8.2 percent stake in Dell, said yesterday in a Securities and Exchange Commission filing that it exercised the options May 15, boosting its voting authority to 146 million shares.
The move doesn’t affect the firm’s Dell ownership stake.
Southeastern last week teamed with billionaire Carl Icahn to offer $12 a share in cash or stock for the company. Founder Michael Dell and Silver Lake Management have offered $13.65 a share in cash.
Dell’s dismal results might work to the advantage of the company’s board. Some shareholders say Dell and Silver Lake’s offer price is too low, but Dell’s board contends it’s a good deal in light of challenges facing the company.
Profit excluding some items fell to 21 cents a share, from 43 cents a year earlier. Analysts on average had projected 35 cents.