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UPS Partners
UPS Shareowners Elect Board, Reappoint Deloitte and Touche
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<blockquote data-quote="SignificantOwner" data-source="post: 977010" data-attributes="member: 22836"><p>A 3% dividend with almost no capital appreciation in years (even in a good economy) isn't a good return. Insiders that have too much stock and a dual class share structure tend to focus on safety and maintaining voting control rather than focusing on stock price growth that would benefit common shareholders according to a study from the Wharton school of business (<a href="http://knowledge.wharton.upenn.edu/article.cfm?articleid=1001" target="_blank">The Effects of Dual-class Ownership on Ordinary Shareholders - Knowledge@Wharton</a>). </p><p></p><p> Our acquitision history seems to reflect the findings of the Wharton study. The main reason given for going public was to enable UPS to use stock as a currency for acquisitions, but the majority have been financed with cash and debt. Are the decisions being made on maintaining control versus maximizing value for shareholders? It looks like the dual class share structure is a drag on our stock price. </p><p> </p><p>TNT (2012) - $6.8 billion total, $5 billion cash, $1.8 billion debt (tried to use more debt but ratings agencies served notice of possible downgrades to our debt rating).</p><p>Overnite (2005) - 1.2 billion cash.</p><p>Menlo (2004) - $150 million cash, $110 debt.</p><p>Mailboxes Etc. (2001) - $191 million cash.</p><p>Fritz (2001) - 450 million in class B shares.</p><p>First International Bancorp (2001) - $78 million in class B shares.</p></blockquote><p></p>
[QUOTE="SignificantOwner, post: 977010, member: 22836"] A 3% dividend with almost no capital appreciation in years (even in a good economy) isn't a good return. Insiders that have too much stock and a dual class share structure tend to focus on safety and maintaining voting control rather than focusing on stock price growth that would benefit common shareholders according to a study from the Wharton school of business ([url=http://knowledge.wharton.upenn.edu/article.cfm?articleid=1001]The Effects of Dual-class Ownership on Ordinary Shareholders - Knowledge@Wharton[/url]). Our acquitision history seems to reflect the findings of the Wharton study. The main reason given for going public was to enable UPS to use stock as a currency for acquisitions, but the majority have been financed with cash and debt. Are the decisions being made on maintaining control versus maximizing value for shareholders? It looks like the dual class share structure is a drag on our stock price. TNT (2012) - $6.8 billion total, $5 billion cash, $1.8 billion debt (tried to use more debt but ratings agencies served notice of possible downgrades to our debt rating). Overnite (2005) - 1.2 billion cash. Menlo (2004) - $150 million cash, $110 debt. Mailboxes Etc. (2001) - $191 million cash. Fritz (2001) - 450 million in class B shares. First International Bancorp (2001) - $78 million in class B shares. [/QUOTE]
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UPS Shareowners Elect Board, Reappoint Deloitte and Touche
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