Menu
Activist investor Icahn sues Dell over IPO plans

Activist investor Icahn sues Dell over IPO plans

Icahn called the proposed deal a "conflicted transaction"

Credit: Reuters

Activist investor Carl Icahn has sued Dell Technologies, alleging that the computer maker did not disclose financial information related to its plans to go public by buying back its tracking stock.

Icahn, who owns 9.3 per cent of Dell, called the proposed deal a "conflicted transaction" that benefits the controlling stockholders, at the expense of the DVMT stockholders.

Dell said in July it would pay US$21.7 billion in cash and stock to buy back shares tied to its interest in software company VMware, returning it to the stock market without an initial public offering.

Icahn and other hedge fund investors have resisted the plan, saying the proposed deal massively undervalues the tracking stock.

"We believe this is a threat blatantly deployed in an attempt to coerce DVMT stockholders to vote in favor of the merger, or else risk the unknown consequences of the forced IPO conversion," Icahn said on Thursday.

Dell will hold a shareholder meeting on 11 December to vote on the deal.

A Dell spokesman said Icahn's allegations were "unfounded", adding that the company would file a response later in the day.

Icahn is no stranger to lawsuits. He sued AmTrust Financial Services earlier this year over its go-private plans.

The investor also turned legal arguments against Dell in the past, having alleged that Michael Dell and Silver Lake undervalued the company's go-private deal several years ago.

Icahn, along with investor Darwin Deason, also urged Xerox shareholders earlier this year to oppose a sale to Japan's Fujifilm Holdings.

Carl Icahn did not immediately respond to request for comment.

(Reporting by Vibhuti Sharma in Bengaluru, Additional reporting by Svea Herbst-Bayliss; Editing by Saumyadeb Chakrabarty)


Follow Us

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags Carl IcahnDell Technologies

Featured

Slideshows

Leading female front runners of the Kiwi ICT industry honoured at 2019 WIICTA

Leading female front runners of the Kiwi ICT industry honoured at 2019 WIICTA

Reseller News has honoured the leading female front runners of the New Zealand ICT industry at the 2019 Women in ICT Awards (WIICTA) in Auckland. The awards recognised standout individuals across six categories, spanning Entrepreneur, Rising Star, Shining Star, Community, Technical and Achievement. Photos by Gino Demeer.

Leading female front runners of the Kiwi ICT industry honoured at 2019 WIICTA
Reseller News kicks off awards season in 2019 with Judges' Lunch

Reseller News kicks off awards season in 2019 with Judges' Lunch

The 2019 Reseller News Innovation Awards has kicked off with the Judges Lunch in Auckland with 70 judges in the voting panel. The awards will reflect the changing dynamics of the channel, recognising excellence across customer value and innovation - spanning start-ups, partners, distributors and vendors. Photos by Christine Wong.

Reseller News kicks off awards season in 2019 with Judges' Lunch
Reseller News welcomes industry figures for 2019 Hall of Fame lunch

Reseller News welcomes industry figures for 2019 Hall of Fame lunch

Reseller News welcomed 2018 inductees - Chris Simpson, Kendra Ross and Phill Patton - to the third running of the Reseller News Hall of Fame lunch, held at the French Cafe in Auckland. The inductees discussed the changing landscape of the technology industry in New Zealand, while outlining ways to attract a new breed of players to the ecosystem. Photos by Gino Demeer.

Reseller News welcomes industry figures for 2019 Hall of Fame lunch
Show Comments