Activist investor Carl Icahn has sued Dell Technologies, alleging that the technology giant did not disclose financial information related to its plans to go public by buying back its tracking stock, Reuters reports.
Dell is attempting to buy back shares tied to its interest in VMware. The proposed move would essentially shift Dell back into public markets without having to launch a formalized IPO (Initial Public Offering). However, Icahn and several other hedge fund investors don't like Dell's $21.7 billion proposal for the deal.
Dell is pushing for a December 11 shareholder vote about the plan.
Dell declined to comment about the lawsuit, while Icahn did not immediately respond to requests for comment, Reuters said.
Dell Technologies Has Momentum
Amid that backdrop, Dell’s business appears to be gaining strength. The company reported stronger-than-expected Q2 fiscal 2019 revenues in September 2018, and raised its revenue outlook for the rest of this fiscal year. Among the key metrics to note: Revenue rose 18 percent to $22.9 billion vs. Q2 fiscal 2018.
That’s particularly impressive, considering so many customers are moving workloads from traditional data centers into public clouds like Amazon Web Services, Microsoft Azure and Google Cloud Platform.