Billionaire investor Carl Icahn has given up attempts to derail the $24.4bn take-private bid from CEO Michael Dell and private equity firm Silver Lake.
In a letter to shareholders, Icahn compared Dell’s board to a “dictatorship” and criticised its decision to postpone a shareholder vote on the take-private offer.
Dell and Silver Lake were said to expect the bid to fail if no changes are made to the voting standard.
He said, “Icahn and Southeastern argued that stockholders should not give up the huge potential of Dell and therefore should reject the proposed transaction.
“We won, or at least thought we won, but when the board realized that they lost the vote, they simply ignored the outcome.
“Even in a dictatorship when the ruling party loses an election, and then ignores its outcome, it attempts to provide a plausible reason to justify their actions.”
Icahn added that the board “simply relied on the usual ‘business judgment’ catchall and Delaware law to uphold their actions.”
The letter also pointed out that the offer values Dell 70 per cent below its ten-year high of $42.38 per share and “freezes stockholders out of any possibility of realizing Dell’s great potential.”
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