Tom Sandell And A New Rollup Company

0
Tom Sandell And A New Rollup Company

Tom Sandell And A New Rollup Company by Stock Pucker

Tom Sandell of Sandell Asset Management is back at it, targeting Viavi Solutions the $1.3 billion market cap network service solutions provider for the telecommunications space.

The company was a small position for Sandell in 2Q – owning 1.4 percent of the company. He increased his stake fourfold and now owns 5.5 percent. The interesting thing is that this is now his second-largest equity holding, behind Bob Evans and ahead of Brookdale Senior Living.

Per Sandell’s letter [here], he has some demands to help get the company back on track, including:

This AI-Powered Emerging Hedge Fund Manager Is Blazing A New Path

Artificial IntelligenceInvestment strategies used by hedge funds have evolved over the years, although the biggest changes have come in the use of computers to develop portfolios. Rosetta Analytics is a woman-founded and woman-led CTA that's pioneering the use of artificial intelligence and deep reinforcement learning to build and manage alternative investment strategies for institutional and private Read More


  • Refreshing and materially enhancing the quality of Viavi’s Board of Directors;
  • Conducting a thorough review of strategic alternatives;
  • Retaining an independent financial advisor and operational consulting firm; and
  • Identifying a new management team with the experience necessary to maximize the value of the Company’s deferred tax assets, which include its $4 billion to $4.5 billion of federal net operating losses (NOLs).

The big standouts are monetizing its NOLs and a strategic review to get the company sold – in that case the value is $10 to a buyer or $12 if it using its NOLs (effectively becoming a platform company). Sandell cites examples of platform companies as Jarden, Platform Specialty Products, and Nomad Foods Limited (LSE: NHL).

The key, though, is to get a CEO that can Viavi into a platform company – something he thinks he can help with.

No posts to display