Billionaire Carl Icahn proposed in a letter to shareholders that Dell undertake a tender offer for 1.1 billion shares at $14 each as an alternative to Michael Dell and Silver Lake Partners's proposal to take the computer maker private.
Icahn also announced a purchase of 72 million Dell shares from Southeastern Asset Management, making him the second largest shareholder in Dell.
The letter also said that a "major bank" was willing to provide $1.6 billion in financing. According to a source, Jefferies is the major bank.
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Icahn told CNBC, "Despite Dell's own dire projections, the company's own consultant BCG, which they neglected to mention in their last report, stated that in the most conservative case, that Dell would make operating income of $3.3 billion in calendar year 2014."
Icahn then said, "After the tender offer, if everybody tenders, there will be 670 million shares left which will earn pretax $3.72 per share. Don't you think that stock will be worth more than $14?"
—Reporting by CNBC's Scott Wapner.