Message Font: Serif | Sans-Serif
 
UnThreaded | Threaded | Whole Thread (2) | Ignore Thread Prev | Next
Author: newsreporter Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 3549  
Subject: Dividend Declared Date: 6/9/2005 3:10 AM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
Software Maker Siebel to Pay Dividend
http://tinyurl.com/7auky


Troubled business software maker Siebel Systems Inc. said Wednesday that it will begin paying a quarterly dividend, hoping to placate disgruntled shareholders who want the company to either stop hoarding its cash or sell itself.

CEO George Shaheen, who took over at Siebel two months ago in an abrupt shake-up, announced the 2.5 cent-per-share quarterly dividend before the San Mateo-based company's annual meeting. He also reiterated an earlier vow to reverse years of eroding sales and promised to expand the company's board by adding two more directors -- another apparent move aimed at soothing ruffled shareholders.

...

The dividend -- the first in Siebel's 12-year history -- will cost about $51 million annually, hardly putting a dent in the company's bank account. As of March 31, Siebel held $2.2 billion, money that a growing number of shareholders believe should be returned to them as a much larger dividend or a stock buyback program.

Siebel's new dividend "is a distraction. It's basically just the interest that they earn on their cash," said Herbert Denton, president of Provident Recovery, a company shareholder who has been organizing other unhappy investors.

Shaheen defended the size of the dividend, noting that the payment represented a 1.1 percent yield on Siebel's stock price before Wednesday's decline. The average yield of other dividend-paying technology companies in the Standard & Poor's 500 index is 0.8 percent, Shaheen said.

...

If Shaheen's plan falters, Denton believes Siebel ultimately will be sold at a bargain price to an opportunistic buyer like Oracle Corp., which listed the company on an internal list of takeover candidates drawn up two years ago.

Shaheen declined to say whether Siebel had been contacted by Oracle or other suitors. He said he remains more interested in buying other companies to help Siebel expand its market share, but also stressed that the decision to sell ultimately is out of his hands because the board has a fiduciary responsibility to shareholders.

"If a bona fide offer comes along, we will have to consider it," Shaheen said.
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (2) | Ignore Thread Prev | Next

Announcements

What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement