Billionaire Carl Icahn, seeking to scuttle a buyout led by Silver Lake Management LLC, is asking Dell Inc. investors to bet on a computer maker beset by rising competition, tumbling demand and a bigger debt load.
Silver Lake Management LLC and Michael Dell attached such stringent conditions to their Dell Inc. buyout proposal that they may have little choice but to stick with the deal even as the personal-computer industry contracts at a faster-than-predicted pace.
Blackstone Group LP decided against a bid for Dell Inc. in part because executive Dave Johnson, the computer maker’s former mergers chief, pulled support for the deal he helped conceive, said people familiar with the matter.
Dell Inc. founder Michael Dell will only consider backing a buyout by Blackstone Group LP if the private-equity firm guarantees he can remain as chief executive officer, according to a person familiar with the discussions.
After days of discussions, Blackstone Group LP and Dell Inc.’s Michael Dell have yet to tackle a critical issue, according to a person with knowledge of the matter: what role he would play if the private-equity firm wins the bidding for the computer maker.
Blackstone Group LP and activist investor Carl Icahn submitted proposals to buy Dell Inc. that would rival a $24.4 billion buyout offer from Silver Lake Management LLC and company founder Michael Dell, according to people with knowledge of the matter.