There are undoubtedly a lot of Pall investors that have enjoyed dividends over the years and are now very disgruntled.
For example, I know that the Scottish National Bank used to hold a lot of Pall stock for the consistant low growth and good dividends. Pall used to be a good conservative place for your money. These investors can no longer count on Pall!
I almost missed how they tried to slip this little change in:
From the press release--
In combination with the transaction, Pall plans to reduce its quarterly dividend to $0.09 from the current $0.17 level. ``Our primary objective is to increase shareholder value, and a strong balance sheet is the foundation for achieving this objective,'' said Krasnoff. ``This is a sound move that brings our dividend payout ratio to a level consistent with industry averages. The approximately $40 million in cash we will conserve annually may be used for future investments, debt reduction or other more tax-efficient means of creating value for our shareholders.''
The dividend was one of the few reasons to own this stock...
The US Filter business is made up of what used to be Filterite (common filters sold by Sears and local water softening cos.) and the former Millipore water purification business. Neither company was very profitable and growth occurred only during capital spending up-cycles. They had some hardware manufacturing as well filter manufacturing but nothing was proprietary or high value added type products.
Looks to me like Pall Mngmt is just trying to consolidate the business environment with little thought to growing into new opportunities.