Billionaire investor Carl Icahn is teaming up with Southeastern Asset Management to bid for Dell, proposing an alternative to the $24.4 billion buyout proposed by founder Michael Dell and private equity firm Silver Lake partners.
CNBC has learned the activist investor and Southeastern Asset Management will launch a proxy fight and are offering $12 per share in cash and $5.2 billion in new debt, which would be guaranteed.
In a bid in February, Michael Dell and Silver Lake offered $13.65 per share.
Southeastern Asset Management owns 6.95 percent of Dell's shares, making it the second-largest shareholder after Michael Dell, according to Reuters data.
The Wall Street Journal reported separately that Icahn and Southeastern had written a letter to Dell's board giving shareholders the option to keep stock in the company and offering an additional $12 in cash or stock.