Icahn sues Dell as buyout battle takes nasty turn

Reports today reveal major investor has filed lawsuit aimed at blocking changes in timing and terms for shareholder voting

Michael Dell's headaches continue over taking the firm he founded as major shareholder private and main nemesis Carl Icahn launches a lawsuit to stop him in his tracks.

The suit filed by Icahn and associates in the state of Delaware will, according to an article in the Telegraph online, lay out a series of stumbling blocks to moves that could improve Dell's chances of fulfilling his plans.

It seeks to prevent a change in the date by which Dell shares must have been bought to qualify to vote, and to prevent anyone who bought their shares after 5 February this year being able to vote.

The suit also accuses the Dell board of directors of breaching fiduciary duties.

Shareholders are meeting for a third time today to vote on Dell's proposed buyout, but the founder has already vowed to stay on if his bid fails.

He said earlier this week: "If the deal does not go through, I plan to stay and continue to do my best to make the company successful. I will not support the kind of recapitalisation and sale of assets some shareholders are suggesting.

"Given where we are today, I believe the challenges we would face as a public company, including a potential proxy fight, would be significant. But I am ready to fight and I am committed to doing what I believe is right for the company."