The Dell privatization plan is facing stiff criticism from hedge fund manager David Einhorn. Einhorn, who is in the midst of battle with Apple over that technology innovator's US$137 billion cash fund, is using the buyout of Dell shares as a cash policy that is unfriendly to its shareholders.

Dell founder Michael Dell privatized the company he founded in his dorm room through a partnership with Silver Lake and Microsoft Corp. This deal is worth US$24.4 billion and is now being vociferously opposed by many of its shareholders, such as Southeastern Asset Management, claiming that the deal undervalues the company.

Einhorn is a bit of a wunderkind as he predicted the fall of the mighty Lehman Brothers and owned shares of stock for Dell but sold them off as he felt the capital allocation strategy of the third largest technology firm to be 'unappealing'. He is now saying that the falling share price was for Dell's benefit, saying that Dell would utilize the company's cash flush balance sheet to leverage the buyout of the shares.