Disgruntled Siebel shareholders to meet

Meeting set next Wednesday in New York to discuss a number of "value enhancement" issues to Siebel's stock.

Reuters

May 6, 2005 5:00 a.m. PT

A disgruntled Siebel Systems shareholder expects holders of about a third of the company's shares to meet next week to consider the the business software maker's future and how it should use its cash.

Providence Capital, a company that specializes in giving shareholder advice, has scheduled a meeting next Wednesday in New York to discuss a number of "value enhancement" issues to Siebel's stock.

"Based on past experience, we'll have at least 30 percent of (shares) represented in the room," Providence President Herbert Denton told Reuters. Providence Capital's affiliate Providence Recovery Partners LP owns less than 1 percent of Siebel stock.

"For Siebel to talk about having a good balance sheet is fine, but to not spend a dime on a single (repurchase) is unacceptable...and when they could be doing something (with the money) to leverage the company's turnaround," he said.

Denton declined to say which other shareholders have issues with Siebel's strategy, but said those investors were likely to be known next week.

Siebel said on Tuesday that delayed customer deals will cause it to miss its current first-quarter sales and profit forecast, raising analyst concerns about the health of the software sector amid other profit warnings this week.