The Wall Street Journal is reporting that T. Rowe Price Group is likely to announce as early as next week a plan to reimburse clients who lost out when it accidentally voted in favor of the 2013 buyout of Dell Inc. by its founder Michael Dell, according to people familiar with the matter.
T. Rowe had vocally opposed the deal, saying it undervalued the 30 million Dell shares held by its mutual funds. But a series of administrative errors caused the firm to vote in favor of the deal, disqualifying it from suing for more money. Other holders successfully sued and won compensation from a judge, who ruled earlier this week that Mr. Dell and his partners underpaid by $6 billion.
Bloomberg’s Matt Levine last month wrote a lengthy column in which he dissected and explained the confusing circumstances under which shares are voted in these scenarios. The Dell-T. Rowe scenario is particularly tortuous.