Icahn Buys More Dell Shares, Pushes Legal Action


Carl Icahn stepped up his war with Michael Dell Monday, buying 4 million additional shares of Dell stock and filing a brief with a Delaware court, asking it to expedite his lawsuit against the company. Activist investor Icahn is determined to derail Michael Dell's attempt to privatize his company.

With the purchase of additional shares, Icahn upped his ownership stake in Dell from 8.7 to 8.9 percent, or 156.5 million shares. News of the purchase, revealed in SEC filings posted Monday, follows a significant win for Michael Dell and investment partner Silver Lake. Last week Dell agreed to delay the shareholder buyout vote until Sept. 12 and change the voting rules in exchange for a better buyout offer from Michael Dell and Silver Lake.

Icahn and his investment partners blasted Dell and its board of directors Monday in a brief filed with a Delaware court, stating they "believe the Dell board has breached its fiduciary duties by taking the actions it disclosed late last week." Icahn and his financial backers are seeking to expedite proceedings in connection with a lawsuit they filed last week that insisted that Dell should hold its special meeting and annual meeting "on the same date and time." Dell announced last week that the company's annual shareholder meeting will be held Oct. 17.

[Related: Dell Buyout Vote: 10 FAQs And Answers]

Icahn's increased ownership in Dell is tied in part to new rules the Dell board agreed to last week that changed the record date -- a date that determines which shareholders can vote on the buyout offer. The new record date is Aug. 13, which means anyone who purchases Dell shares before that date can vote "yes" or "no" on the buyout offer.

Icahn is now the second largest shareholder of Dell behind Michael Dell, who owns about 16 percent of the company. Michael Dell cannot vote his shares.

As The Wall Street Journal pointed out , billionaire investor Icahn has already benefited from his recently purchased shares. Shares purchased last week for $12.94 were up at Monday's close to $13.68, netting Icahn about $3 million, according to The Wall Street Journal report.

PUBLISHED AUG. 6, 2013