Thursday, 25 August 2016
Last updated 8 hours ago
Aug 6 2013 | 1:08pm ET
Carl Icahn isn't giving up his fight to block the sale of Dell Inc. to its founder and a private-equity firm.
Icahn has bought up an addition four million shares of the computer-maker, boosting his stake in the company to 8.9%. The purchase makes him Dell's second-largest shareholder, after Michael Dell himself; Icahn is barred from owning 10% or more of the company.
Icahn bought the shares on Thursday, a day before Dell announced a richer deal with Michael Dell and Silver Lake Partners—one that is expected to be approved by Dell shareholders next month.
On the same day, Icahn filed suit against Dell to prevent it from changing the rules for voting on the buyout, which it did on Friday when it accepted the new offer, which will pay $13.75 per share—10 cents more than the original offer—and a special 13 cent per share dividend, on top of guaranteed dividends of 24 cents.
"An increase of a mere 13 cents is an insult to shareholders," Icahn said on Friday. He blasted the special committee handling the sale, accusing it of "improperly putting its thumb on the scales in favor of Mr. Dell's offer."
Icahn has proposed a share buyback plan that would pay investors $14 per share. But in order to effectuate it, he'll need to have the Dell-Silver Lake offer rejected and then take control of Dell's board at its next annual meeting.