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Analyst: ValueAct has good chance to grab a seat on Microsoft’s board

05-17-12ceosummit_ballmer_PageBecause the mud settles from Microsoft’s big earnings miss last week, the eye is popping to an anticipated try by activist investor ValueAct Capital to press for illustration on the Microsoft board. And one longtime analyst says the agency’s prospects are good.

Rick Sherlund of Nomura Analysis writes in a observe to shoppers, “We expect the probabilities of [ValueAct] profitable a board seat are excessive given the dissatisfaction with how Microsoft has failed to optimize shareholder worth, and we suspect Microsoft figures it’s higher to work by the ValueAct agenda in non-public somewhat than in a public proxy solicitation course of.”

Reuters reported on Friday afternoon that ValueAct has held talks with members of Microsoft’s board about its want to pursue a board seat, urgent the corporate over points together with the obvious lack of a succession plan for Microsoft CEO Steve Ballmer.

However the massive short-term problem seems to be the corporate’s money place, which now quantities to greater than $77 billion in money and short-term investments. ValueAct and different traders are urgent for Microsoft to return extra of that to shareholders in some kind.

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