Feeds

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

'Stop Mickey D' campaign fails to halt latest offer

High performance access to file storage

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. ®

High performance access to file storage

More from The Register

next story
Audio fans, prepare yourself for the Second Coming ... of Blu-ray
High Fidelity Pure Audio – is this what your ears have been waiting for?
Dropbox defends fantastically badly timed Condoleezza Rice appointment
'Nothing is going to change with Dr. Rice's appointment,' file sharer promises
Did a date calculation bug just cost hard-up Co-op Bank £110m?
And just when Brit banking org needs £400m to stay afloat
MtGox chief Karpelès refuses to come to US for g-men's grilling
Bitcoin baron says he needs another lawyer for FinCEN chat
Zucker punched: Google gobbles Facebook-wooed Titan Aerospace
Up, up and away in my beautiful balloon flying broadband-bot
Apple DOMINATES the Valley, rakes in more profit than Google, HP, Intel, Cisco COMBINED
Cook & Co. also pay more taxes than those four worthies PLUS eBay and Oracle
It may be ILLEGAL to run Heartbleed health checks – IT lawyer
Do the right thing, earn up to 10 years in clink
France bans managers from contacting workers outside business hours
«Email? Mais non ... il est plus tard que six heures du soir!»
prev story

Whitepapers

Mainstay ROI - Does application security pay?
In this whitepaper learn how you and your enterprise might benefit from better software security.
Five 3D headsets to be won!
We were so impressed by the Durovis Dive headset we’ve asked the company to give some away to Reg readers.
3 Big data security analytics techniques
Applying these Big Data security analytics techniques can help you make your business safer by detecting attacks early, before significant damage is done.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Mobile application security study
Download this report to see the alarming realities regarding the sheer number of applications vulnerable to attack, as well as the most common and easily addressable vulnerability errors.