Activist investor Carl Icahn reported an 8.3 percent stake in Dell tracking stock on Monday, and urged investors to vote against a proposed buyback by Dell Technologies of shares tied to its interest in software company VMware.
Dell Technologies in July said it would pay $21.7 billion in cash and stock to buy back shares tied to its interest in software company VMware.
Several other hedge funds, including Elliott Management and Canyon Capital Advisors, have resisted Dell’s effort to buy back the “tracking stock” from them.
“The Dell Tracker currently sells for approximately $92 per share but is worth on a pure mathematical basis approximately $144 per share,” Carl Icahn said in an open letter to stockholders.
Dell said in October it had met with some investment banks to explore an initial public offering if its plan to buy the tracking stock of VMware falls through.
