Feeds

Icahn sues Dell's board over Big Mike's buyout bid

'Stop Mickey D' campaign fails to halt latest offer

Boost IT visibility and business value

Activist investor Carl Icahn and his affiliates have filed a legal complaint against Dell and its board members in his latest attempt to thwart Big Mike's efforts to regain control of the PC behemoth.

Icahn filed in Delaware's Court of Chancery on a number of counts. One of these is a request for the court to to stop Michael Dell and his partners from counting any votes from shares that were bought after they announced their bid to take the firm private.

It's likely that Icahn and his partners, Southeastern Asset Management, reckon that anyone who bought shares in Dell after the buyout offer was on the table did so because they wanted to vote for it.

The ticked-off investors are also pushing for a declaration from the board that it breached its fiduciary duties to stockholders by postponing the vote on the deal from 24 July without scheduling the firm's already late AGM, at which board members could be changed. Icahn and his affiliates want damages from Dell and the board for any losses they caused.

Getting the annual general meeting scheduled has been one of Icahn's main campaigning tactics against the buyout offer, which he and his partners view as too low. An AGM would give them the opportunity to propose their own picks for the board.

The shareholder vote on Mike's offer to take the firm private at $13.65 per share has already been postponed twice and is now scheduled for later today.

The most recent delay came when Dell (the man, rather than the firm) offered to raise the bid by 10c a share, if the voting rules were changed to allow shareholders who abstained from the vote to be discounted.

As it stands, abstained votes are counted as voting against the deal. But the firm's special board committee rejected the rule change, which had been met with outrage from major investors.

Meanwhile, Reuters reports that a buyout deal for $13.75 per share and a special dividend of 13c per share is "close", according to a familiar person. ®

Build a business case: developing custom apps

More from The Register

next story
6 Obvious Reasons Why Facebook Will Ban This Article (Thank God)
Clampdown on clickbait ... and El Reg is OK with this
No, thank you. I will not code for the Caliphate
Some assignments, even the Bongster decline must
Barnes & Noble: Swallow a Samsung Nook tablet, please ... pretty please
Novelslab finally on sale with ($199 - $20) price tag
Banking apps: Handy, can grab all your money... and RIDDLED with coding flaws
Yep, that one place you'd hoped you wouldn't find 'em
Video of US journalist 'beheading' pulled from social media
Yanked footage featured British-accented attacker and US journo James Foley
Primetime precrime? Minority Report TV series 'being developed'
I have to know. I have to find out what happened to my life
Netflix swallows yet another bitter pill, inks peering deal with TWC
Net neutrality crusader once again pays up for priority access
Judge nixes HP deal for director amnesty after $8.8bn Autonomy snafu
Lawyers will have to earn their keep the hard way, says court
Ex-IBM CEO John Akers dies at 79
An era disrupted by the advent of the PC
prev story

Whitepapers

Top 10 endpoint backup mistakes
Avoid the ten endpoint backup mistakes to ensure that your critical corporate data is protected and end user productivity is improved.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Backing up distributed data
Eliminating the redundant use of bandwidth and storage capacity and application consolidation in the modern data center.
The essential guide to IT transformation
ServiceNow discusses three IT transformations that can help CIOs automate IT services to transform IT and the enterprise
Next gen security for virtualised datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.