BREAKING NEWS: Carl Icahn ends pursuit of Dell


delllBillionaire 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.

Last month Icahn sued Dell to prevent the computer maker from changing the terms of shareholder voting for the buyout vote.

Dell and Silver Lake were said to expect the bid to fail if no changes are made to the voting standard.

Back in June Icahn and buyout firm Southeastern asked fellow Dell shareholders to vote against the take-private offer.

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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