David Tepper sends letter to Whirlpool board over ‘unnecessary dilution’

David Tepper’s Appaloosa said it sent a letter today to Whirlpool’s (WHR) board in response to the company’s “recent issuance of equity at a very high cost of capital, which resulted in a large, unnecessary dilution of shareholders.” The letter from David Tepper states in part, “As one of its largest shareholders, we looked on with a certain astonishment at Whirlpool Corporation’s recent issuance of equity, which resulted in a large, unnecessary dilution of shareholders. We believe this action reflects a striking lack of judgment on the part of the Board and senior management team…Over the years this management team has destroyed hundreds of millions of dollars of shareholder value. Enough is enough. There can be no more excuses. We encourage the Board to (i) remember their fiduciary responsibilities and not accept management acting purely in its own self-interest, and (ii) invite domestic entities or foreign corporations who want to create American jobs and increase shareholder value to take an interest in Whirlpool.”