Shareholder Suit Challenges Dell Buyout Plan
DOVER, Del. (AP) -- 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 Michael Dell 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.