DST shareholders meet to discuss buyout interest - Reuters

DST shareholders meet to discuss buyout interest - Reuters

Major shareholders in DST Systems, a US provider of data-processing software for mutual funds and investment companies, are set to meet today after the firm's management recently rebuffed takeover overtures.

Activist investor Russell Glass has told Reuters that at least 20 of DST's largest institutional investors will meet in New York today and that a letter has been sent inviting the company's board to attend.

Last month, in response to a Reuters report, DST issued a statement confirming that it has received "informal enquiries" from private equity firms but that the board "has unanimously concluded that it is in the best interests of its stockholders for DST to remain independent and not to pursue a sale transaction at this time".

According to Reuters, the firm knocked back interest from Glass and PE interests looking at a buyout worth in the mid-$60 per share range and he has since requested that DST hire an adviser to explore deals.

DST share closed yesterday at $54.49 but in its June statement the company insisted that "its current stock price is not representative of its long-term intrinsic value, does not reflect the value of its assets and would not be a sensible starting point for discussions or negotiations regarding a sale transaction".

Major DST investors to meet on buyout interest - Reuters

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