Carl Icahn files lawsuit against Dell

The activist investor alleges Dell and its board attempted to block $24.4bn buyout proposal.

New Statesman
Financier Carl Icahn. Credit: Getty Images.

American investor Carl Icahn has filed a lawsuit against PC maker Dell and its board in the Court of Chancery of Delaware for making attempts to block the proposed $24.4bn buyout of the company.

In his lawsuit, Icahn alleged the PC maker of making changes to rules ahead of a shareholder vote that was scheduled for 2 August 2013.

Icahn and his affiliates have urged the court to halt the PC maker from altering the date of record by which shareholders would have acquired the shares for voting, reported Reuters.

On 30 July 2013, Dell’s special committee rejected Michael Dell and Silver Lake’s request to change the voting rules in exchange for increased offer from 13.65 per share to $13.75 per share.

The special committee further said that it will proceed with the existing $13.65 per share bid on 2 August 2013.

Icahn and the affiliates also sought the court to stop Michael Dell from voting any shares bought since 5 February 2013 at any shareholder meeting, as the buyout offer was first made on this date.

Icahn earlier said that Dell Founder Michael Dell’s offer undervalues the PC maker.

Shareholder voting on the buyout has been postponed twice so far.

Meanwhile, share price of Dell grew by 2.3 per cent to $12.96 on the Nasdaq.