Shareholder suit challenges Dell buyout plan

A lawsuit challenging plans to take troubled personal computer maker Dell Inc. private is being filed in Delaware.

The lawsuit filed Wednesday claims that company founder and a group led by investment firm Silver Lake are trying to buy the Round Rock, Texas-based computer maker on the cheap for $24.4 billion, or $13.65 per share.

The lawsuit was filed one day after the management-led leveraged buyout was announced.

It accuses Michael Dell and company directors of breaching their fiduciary duties by failing to maximize shareholder value and selling the company at an inadequate price at the expense of minority shareholders.

Anticipating resistance to the deal from stockholders, Dell's board has said other potential buyers will have 45 days for to submit higher bids.


Explore further

Dell near $23 bn mega-deal to take company private, report says

Copyright 2013 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Citation: Shareholder suit challenges Dell buyout plan (2013, February 6) retrieved 14 October 2019 from https://phys.org/news/2013-02-shareholder-dell-buyout.html
This document is subject to copyright. Apart from any fair dealing for the purpose of private study or research, no part may be reproduced without the written permission. The content is provided for information purposes only.
0 shares

Feedback to editors

User comments

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more