Billionaire investor Carl Icahn, who has just informed the Dell board of an intention to bid for the company with Southeastern Asset Management, told Reuters that he is willing to contribute a couple of billion of dollars in order to finance a bridge loan worth US$5.2 billion as the first step in challenging the US$24.4 billion dollar bid from founder Michael Dell and Silver Lake Partners.
Icahn told Reuters, "We talked to some investment bankers and I personally would do a couple of billion if I had to."
Michael Dell is doing battle with Carl C. Icahn for the future of the world's third biggest computer manufacturer. It was once a clear blue chip but with the current revolution of smart phones and tablets, the company is struggling to evolve.
Icahn's bid is worth nearly US$21 billion, in a deal that would provide each shareholder US$12 cash for every share owned as well as allowing them to keep their shareholdings. While on the other hand, Dell's offer places the share price at US$13.65 per share, totalling US$24.4 billion.
The difference between the two is the availabilty of Dell shares in the market, where Dell's proposal would privatize the company while Icahn's would allow shares still to be traded in the market.
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