Carl Icahn Accuses Dell Of Threatening Investors And Forcing Transaction

Arpit Bajpeyi - Nov 06, 2018

The complaint was submitted in Delaware Chancery Court on Wednesday Icahn give request to Dell to allow him to inspect books and records.on

Carl Icahn, an American billionaire, investor, and activist, sued Dell Technologies. He accused the company of not giving basic information about its proposal to return to buy shares of DVMT (Dynamic video memory technology) to return to public markets.

Carl Icahn

On Wednesday, Icahn submitted his complaint to Delaware Chancery court, in which he requests the court to order Dell let him investigate as well as copy its records and books.

The billionaire also expects the judge to generate a process in order to decide which document can go public.

As stated by a representative in Dell in his email, the company expresses strong disagreement with Icahn's accusation which they consider "unfounded", and they will issue a response on Thursday.

Dell stands its ground, claiming its transparency and the complete process which it followed. The process it mentioned involved an external special committee as DVMT shareholders' representative, supported by its own legal and financial consultants.

Carl Icahn (left) and Micheal Dell (right)

Carl Icahn continues by declaring that Dell threatens investors and force them to approve of the transaction at the shareholder meeting on December 11.

In the statement on Thursday, Icahn claimed that Dell would not provide information about the period from July 3 till now, while consultants have been asking for votes.

Also, he pointed out that his companies own approximately 9.2% of Dell's Class V shares.

About the DVMT deal, an Investor called it a "conflicted transaction" which allows better control over shareholders and the loss to DVMT shareholders.

Icahn requests speeding up the case so that it can be set by 3pm Monday.

Last month, Icahn disagreed with Dell's plan to return to public markets and believed that the transaction in plan undervalues the DVMT shares.

The billionaire will call for votes in objection to the deal and may offer a deal in replacement which gives investors an opportunity to cash out.