Activist investor Icahn sues Dell over IPO plans

NEW YORK: Activist investor Carl Icahn 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 $21.7 billion in cash and stock to buy back shares tied to its interest in software company VMware Inc, 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 favour of the merger, or else risk the unknown consequences of the forced IPO conversion,” Icahn said. — Reuters