A group of Dell shareholders are taking Michael Dell, the board of directors and private equity firm Silver Lake to court over their $24.4bn take-private offer, which they said undervalued the business.
The shareholders, including the Mid-South Iron Workers Pension Fund, said the offer underpriced Dell when measured against its recent share buyback and a rival bid from investor Carl Icahn, said Bloomberg.
“After his failed management choices led to significant losses for Dell and a resulting decrease in the company’s stock price, defendant Michael Dell is now attempting to take advantage of the company’s distressed stock price to buy the company on the cheap just as it is starting to experience a turnaround,” the shareholders said in the complaint filed with a US district court in Texas.
They added that the board failed to solicit or consider alternative offers.
Earlier this month it was reported that Icahn and investment firm Southeastern Asset Management were in talks with banks and asset managers to secure up to $7bn for their counter-bid for Dell.
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