Dell sued for not disclosing financial details related to its plans to go public

Activist investor Carl Icahn who owns 9.3 percent of shares sued Dell Technologies.

Activist investor Carl Icahn sued Dell Technologies on 1 November, 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 percent of Dell, called the proposed deal a “conflicted transaction that benefits the controlling stockholders, at the expense of the DVMT stockholders”.

Dell sued for not disclosing financial details related to its plans to go public

Representational image.

Dell in July said it would pay $21.7 billion in cash and stock to buy back shares tied to its interest in software company VMware Inc, returning the company 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 favor of the merger, or else risk the unknown consequences of the forced IPO conversion,” Icahn said on Thursday.

Both Dell and Icahn were not immediately available for comment.

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