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Better Dell Deal Unlikely: Sacconaghi

The $24.4 billion buyout of Dell led by its founder would be tough for competing investors to beat, Toni Sacconaghi of Sanford Bernstein said Tuesday.

"You're talking about likely needing $6 or $7 billion in equity, $15 billion-plus in debt financing," he said. "And that's difficult to pull together."

On CNBC's "Fast Money," Sacconaghi said that he didn't believe a better offer would be forthcoming.

Last month, Dell agreed to be taken private by CEO Michael Dell and private-equity firm Silver Lake Partners, paying shareholders $13.65 in cash per share.

Since then, Carl Icahn has reportedly signed a confidentiality agreement to inspect Dell's books, according to Reuters.

Meanwhile, Blackstone, as well as Hewlett-Packard and Lenovo, are also weighing a bid, Bloomberg News reported.

Sacconaghi explained what he thought was behind the interest.

"I think there have been large shareholders of Dell – principally Southeastern Asset Management and T. Rowe – who believe there's a fundamentally higher value associated with Dell," he said. "I think Carl Icahn has taken that lead and suggested a leveraged recapitalization strategy, which would mean the company would take on even more debt and pay out a dividend.

"And while that could be very nourishing for investors in the short term – he's proposing a $9 dividend – it would leave the company saddled with considerably more debt going forward in a business, I think, that was always questioned by investors."

Saccohanghi reiterated skepticism that another offer for Dell would materialize.

"When push comes to shove, this is an exceptionally large deal for Mr. Icahn or anyone else to provide a competing offer to," he said.

Were the approved buyout to fail, Sacconaghi added, the stock could revisit the $11 level.

Trader disclosure: On March 19, 2013, the following stocks and commodities mentioned or intended to be mentioned on CNBC's "Fast Money" were owned by the "Fast Money" traders: Josh Brown is long AAPL; Josh Brown is long GDX; Josh Brown is long JPM; Josh Brown is long GLD; Josh Brown is long XLU; Josh Brown is long GOOG; Josh Brown is long LULU; Steve Weiss is long BAC; Steve Weiss is long C ; Steve Weiss is short VALE ; Steve Weiss is short RIO; Steve Weiss is short BHP; Joe Terranova is long VRTS; Joe Terranova is long SJM; Joe Terranova is long MJN; Joe Terranova is long SCCO; Joe Terranova is long AAPL; Joe Terranova is long PANW; Joe Terranova is long VSI; Joe Terranova is long AXP; Joe Terranova is long GPS; Joe Terranova is long KORS; Joe Terranova is long GS; Joe Terranova is long SWN; Joe Terranova is short S&P Mini Futures; Simon Baker is long BAC; Simon Baker is long C ; Simon Baker is long WFC; Simon Baker is long CSCO; Simon Baker is long GOOG; Simon Baker is long EBAY; Simon Baker is long AMZN; Simon Baker is long FDX.

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