The hurdles are too high for a Dell buyout to happen, Sanford Bernstein Senior Analyst Toni Sacconaghi said Tuesday on CNBC.
"I ultimately think when push comes to shove, it will not happen," he said. "It's a very large LBO. This will be one of the largest LBOs of all time, with an acquisition cost well over $20 billion."
On "Fast Money," Sacconaghi also said that it would be a pricey move for any potential buyers.
"Against that backdrop, you have a pretty risky environment in the sense that the PC marketplace is going through a lot of change right now," he said.
While the valuation of Dell stock was "pretty darned attractive" and low interest rates could help spur such a deal, Sacconaghi said that it wasn't likely.
"When push comes to shove, the deal doesn't get done," he added.
Trader disclosure: On Jan. 15, 2013, the following stocks and commodities mentioned or intended to be mentioned on CNBC's "Fast Money" were owned by the "Fast Money" traders: Joe Terranova is long VRTS; Joe Terranova is long AAPL; Joe Terranova is long GS; Joe Terranova is long MS; Joe Terranova is long GLW; Joe Terranova is long DELL; Joe Terranova is long SWN; Joe Terranova is long XOM; Steve Weiss is long JPM; Steve Weiss is long BAC; Steve Weiss is long C; Steve Weiss is long FB; Michael Murphy is long AAPL; Michael Murphy is long C; Michael Murphy is long TGT; Michael Murphy is long FB; Jon Najarian is long calls in MS; Jon Najarian is long calls in DELL; Jon Najarian is long calls in CLF; Jon Najarian is long calls in ARNA; Jon Najarian is long VVUS; Jon Najarian is long NE; Jon Najarian is long OREX;
For Toni Sacconaghi
Bernstein currently makes a market in the following companies DELL / Dell Inc.; Bernstein currently makes a market in the following companies AAPL / Apple Inc.
For Gregory Peteres
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