David Tepper criticizes Whirlpool and asks for drastic changes: 'Management is destroying value for shareholders'

David Tepper addressed the Whirlpool board of directors in severe tones, accusing the appliance manufacturer of eroding shareholder value. Therefore, he points out the need for radical changes in the company's strategy and leadership.

The American entrepreneur stated that he had observed “with amazement” the issuance of new shares by the company, defined as a useless and significant dilution for shareholders. He also claimed that the capital increase occurred at a cost of more than 10%, much higher than the cost of the company's debt, after taxes, less than 5% on public markets, despite management having stated the objective of reducing financial leverage.

Whirlpool shares plunged 14% Tuesday following the secondary offering, which the company says will generate $454.9 million from the common stock offering and $508.1 million from the depositary stock offering. Whirlpool also sold 435,000 shares of Guangdong Whirlpool Electrical Appliances at a discounted price of 69 dollars per share through a

private placement.

In addition,Whirlpool was the eighth largest holding in the Appaloosa Management portfolio at the end of the fourth quarter, with a value of 282 million dollars, according to data from Verity. After the news broke, shares of Whirlpool rose nearly 1%.

Tepper criticized Whirlpool for not being able to exploit the tariffs introduced during the Donald Trump administration, suggesting that the company should evaluate partnerships or potential mergers with foreign competitors in difficulty to strengthen its strategic position. Finally, he urged board members to respect their fiduciary duties and not to allow management to act solely in

their own interest.

Benedetta Zimone