Overview
- Appaloosa’s David Tepper sent a public letter accusing Whirlpool’s leadership of destroying shareholder value and urging a formal process to solicit buyers, partners or other strategic alternatives.
- Whirlpool’s recent funding plan totals roughly $963 million, including $454.9 million from a common stock sale, $508.1 million from a depositary share sale and a private placement of 435,000 Guangdong Whirlpool shares at $69 each.
- The company’s shares fell about 14% on the day of the offering announcement and are down roughly 36% from their 52-week high, then rose about 1% in premarket trading after Tepper’s letter.
- Tepper criticized the equity issuance as needlessly dilutive given his claim that Whirlpool’s debt carries a tax‑adjusted cost below 5% versus an effective equity cost exceeding 10%.
- Appaloosa holds a sizable Whirlpool position that ranked among its largest at the end of Q4, and Tepper also faulted management for entrenchment and for failing to capitalize on tariffs by pursuing partnerships or mergers.