Keith Meister, Corvex Capital Sell Almost Entire ADT Corp (ADT) Position

Corvex Capital, managed by Keith Meister, has significantly cut its position ADT Corp (NYSE:ADT), a newly amended filing with the SEC revealed. The fund now holds 361,585 shares of the company, which account for around 0.2% of the company’s common stock. The sale of shares has been conducted under the terms of the Share Repurchase Agreement. The fund disposed 10.24 million shares for a price of $44.01 apiece, cashing in around $450.7 million.

Following the reduction in the holding held by Corvex, Keith Meister also resigned from the company’s board of directors.

Earlier ADT Corp (NYSE:ADT) entered into a share repurchase agreement to buy back $400 million worth of common stock. The total value of shares that have been authorized for repurchasing amounted to $2.0 billion, and was expected to be completed in the first six months of 2014. In November, the board authorized to increase the amount of repurchased shares by $1.0 billion, the extended program planned to end by November 2015.

For the fiscal year 2013, ADT Corp (NYSE:ADT) reported revenue worth over $3.3 billion, up from $3.2 billion reported for the previous fiscal year. In the fourth quarter alone, the revenue went up by an annual 4.2% to $846 million. The net income of the company also increased and totalled $421 million for the full FY 2013, and $96 million for the fourth quarter, up by 6.9% and 2.1% on the year respectively. The stock of ADT has been down by almost 12% since the beginning of the year, trailing a P/E ratio of 23.

Eric Bannasch‘s Cadian Capital, and Larry Robbins‘ Glenview Capital also hold significant positions in ADT Corp. In the latest 13F, Cadian disclosed owning 2.3 million shares of the company, worth $94.4 million. Glenview reported a $82.3 million stake, which contains around 2.0 million shares.

Disclosure: none

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