Dell’s effort to buy his own company back has headed to court now. Recently, activist investor Carl Icahn has sued the company and its board in the latest move to derail a $24 billion buyout bid by its founder and CEO, Michael Dell.
Media reports say that Icahn asks the court to block rule changes Michael Dell has proposed ahead of a shareholder vote scheduled for this week. Carl Icahn and his affiliates also ask the court to stop Dell from changing the record date by which shareholders must have bought their shares to be able to vote.
This lawsuit would stop Michael Dell from using any company shares purchased since February at any annual shareholder meeting when his buyout bid was announced and allow Icahn to put forward his own directors for corporation. In addition, the lawsuit also requires the court to bar Dell from changing any shareholder voting requirements.
The matter is that Michael Dell may not have enough votes to carry the day at any shareholder meeting unless he is able to rig the election in some way. The case, filed in Delaware, seeks to force the corporation to call an annual shareholder meeting on the same day as the special meeting on the buyout.
Apparently, Carl Icahn believes that Michael Dell is trying to purchase his own company too cheap. It seems that there are some “tenuous” talks between the buyout group and Dell’s special board committee for a higher bid.