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Icahn scratching head over BEEELLLIONS needed for Dell deal

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Carl Icahn could be ready to walk away from the Dell rescue deal after reports suggested he's finding stumping up the cash for the refinancing plan a little more difficult than he'd hoped.

Sources told CNBC and the New York Post that Icahn is having second thoughts about the billions needed to finance the offer for Dell put forward by him and his venture capital partner, Southeastern Asset Management, to compete with the takeover bid by Mike Dell and buddy Silver Lake Partners.

The latest funding gap spotted by the firm's special committee suggests that another $3.9bn could be needed to recapitalise the firm, on top of the $5.2bn necessary for the $12-per-share dividend Icahn and SAM have offered Dell investors.

The partners don't have much time to make up their minds either, since shareholders are due to vote on the offer from Dell and Silver Lake on July 18.

Icahn and SAM are trying to stop an attempt by Mike Dell and Silver Lake to take the company private, in a deal they claim doesn't offer shareholders value for money.

They've offered instead to recapitalise the firm, handing more cash to investors in the process, because they believe that Dell's enterprise services business still has some potential - despite the firm's recent ropey numbers. ®

The smart choice: opportunity from uncertainty

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