BOSTON Fund manager T. Rowe Price Group Inc. (TROW.O) said in a securities filing this month it has entered into an insurance agreement to recover $100 million after it made a voting error in the 2013 buyout of Dell Inc.
T. Rowe Price said in the filing dated Jan. 4 that it has recognized the insurance recovery in its fourth-quarter results, to be reported next week, offsetting a $166 million operating charge it took in the second quarter.
T. Rowe Price’s investment team had opposed the $25 billion buyout, saying it undervalued the computer maker, but the firm mistakenly voted clients shares “for” the merger.
After a court dispute, T. Rowe Price made payments to clients to compensate them for the difference in valuation that other investors who opposed the deal were able to pursue.
T. Rowe Price said in the Jan. 4 filing that remaining insurance claims tied to the voting could result in an additional recovery of up to $50 million.
(Reporting by Ross Kerber; Editing by Chizu Nomiyama)