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Taking Sides in Carl Icahn’s Dell Bid

Billionaire investor Carl Icahn's bid for Dell comes with risk – and potential upside – for shareholders, Joe Terranova and Jon Najarian said Monday.

"I don't want to be a part of Dell because I think there's too much risk right now," Terranova said, adding that shareholders are going to want the $13.65 per share offered by CEO Michael Dell and private equity firm Silver Lake Partners.

On CNBC's "Fast Money," Terranova of Virtus Investment Partners said that shareholders are "not going to want the volatility" and risk attached to Icahn's offer to pay investors $12 per share and allow them to hold stock in the troubled PC maker.

Options were a better way to play Dell stock, he added.

"I wouldn't go out, and I would not own the pure equity of this because just on a pure risk-reward basis, although Carl is knocking the ball out of the park right now, I think that the odds are really long here against him," he said.

Icahn, on Friday, argued that his offer would provide greater potential returns for shareholders, criticizing Dell and Silver Lake's bid.

"You could look at it real simplistically and not have to do a hell of a lot of work to know that the shareholders in this case are literally getting screwed," Icahn said.

(Read More: Carl Icahn: Dell Deal 'Almost Grand Theft')

OptionMonster's Najarian agreed with Icahn, seeing the potential gains of a successful turnaround.

"I'd love to get that $12 per share" plus the stub, he said.

The remaining Dell shares could be worth $1 each or they could be worth $10, Najarian added.

"You can't participate with Dell on any of the turnarounds that have been thrown out there, whether it's mergers or otherwise, unless you do the Carl Icahn deal," he said. "If you go with the Michael Dell deal, you're just getting the cash right here. That makes no sense if you want any upside with this company."

Trader disclosure: On May 13, 2013, the following stocks and commodities mentioned or intended to be mentioned on CNBC's "Fast Money" were owned by the "Fast Money" traders: Jon Najarian is long DNR CALLS; Jon Najarian is long OC CALLS; Jon Najarian is long UVXY CALLS; Jon Najarian is long ZNGA CALLS; Jon Najarian is long XLY CALLS; Jon Najarian is short GLD; Jon Najarian is short BKS; Stephanie Link is long AAPL; Stephanie Link is long GS; Stephanie Link is long JPM; Stephanie Link is long CSCO; Stephanie Link is long FB; Simon Baker is long AAPL; Simon Baker is long BAC; Simon Baker is long YHOO; Simon Baker is long FB; Simon Baker is long MSFT; Simon Baker is long GOOG; Simon Baker is long EBAY; Simon Baker is long NFLX; Simon Baker is long GLW; Joe Terranova is long VRTS; Joe Terranova is long SJM; Joe Terranova is long SPLK; Joe Terranova is long LNKD; Joe Terranova is long TBT; Joe Terranova is long SWN.

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