News

Jana ditches NCR

The ATM-maker's largest private shareholder reportedly sold its 9 percent stake in NCR after the company failed to find a buyer.

August 3, 2015

The New York Post reported on Friday that NCR Corp.'s largest shareholder has sold off its entire stake in the company following an auction that came up empty.

The activist hedge fund was believed by some to be pushing for a private sale of the company. However, Jana said in SEC filings that it had only a passive stake in the company, a position that allowed it to sell its 9 percent stake without immediately having to inform shareholders or the SEC, the Post said.

Until Monday, it seemed that a buyout deal might be struck between NCR and private equity firm Thoma Bravo, which was said to have offered $9 billion for the financial technology provider.

However, sources said, the two parties could not agree to a sale price (NCR was reported to be asking $10 billion) and Thoma Bravo withdrew its bid when negotiations came to a standstill.

The auction window closed on July 26 and NCR is no longer officially seeking a buyer. The possibility of a sale was first raised when the NCR board launched a review of strategic alternatives for the company.

In a Q2 earnings call on July 28, NCR Chairman, CEO and President Bill Nuti said these strategic alternatives included everything from returning capital to shareholders in the form of a dividend or buyback to the divestiture or spinoff of noncore businesses to a full sale of the company to "a host of other items."

Nuti said during the call that the board's review would most likely be complete before the company held an Analyst Day — the first in some time, he noted — Sept. 15 at the New York Stock Exchange.

According to the Post, NCR shares dropped 9.1 percent on the news of the Jana divestiture. Jana declined comment on the report.