Dell, an American multinational computer technology corporation was reportedly sued by billionaire investor Carl Icahn in order to spoil a potential buyout from its founder.
Icahn said in a statement released on Thursday that he wants to stop Dell from plotting a new record date for a revised offer from Michael Dell and Silver Lake Partners that raised their bid to $13.75 a share.
The lawsuit aims to discount shares from Michael Dell and affiliates since the announcement on initial buyout offer last February 5, and seeks damages from Dell and its board.
Dell's special committee said on Wednesday that they were open to setting a new record date on a vote for the $13.75 offer, but discarded an amendment to eliminate abstentions, which from the final tally, count as "no" votes.
"A new record date would enable the many shareholders who bought their shares after June 3, 2013 to vote on the transaction while giving all shareholders more time to reflect on where their best interests lie in light of the improved offer," reads an excerpt of the letter.
Boston College associate law professor Brian Quinn approves of Dell's decision to maintain the rule on abstentions. "The rule change, though legal, would have been problematic for them because it would have represented the dismantling of some of the procedural safeguards they had put in place. Dismantling those safeguards because the result would not have been the result they wanted would have been troublesome," he said in an interview with USA Today.
The move is the latest setback in Michael Dell's bid to take the world's third-largest PC maker private. Icahn and Southeastern Asset Management are just some of the biggest opponents to the deal, claiming it has rated the value of the company way too low.
Icahn and Southeastern urged Dell shareholders to do not grab the offer according to their letter filed to the Securities and Exchange Commission on Wednesday.
An excerpt of the letter says, "Take the vote on Friday. Be 'at peace' with the outcome."
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