Reports - Icahn may exit Dell race

Billionaire investor has hit a snag over financing of his proposed recapitalisation of hardware giant, according to US reports

Billionaire investor Carl Icahn may be ready to pull out of the race to control Dell due to financing issues, according to US media reports on Friday.

Citing sources close to the situation, CNBC said the renowned "corporate raider" may bow out of his pursuit to recapitalise the firm, leaving only the original Michael Dell-led $24bn offer backed by Silver Lake on the table.

Shareholders will vote on Silver Lake's offer, which still enjoys the backing of Dell's board, on 18 July.

The New York Post also reported that Icahn's proposal, which is backed by Southeastern Asset Management, has hit a snag, which it said fuels concerns about his ability to pull together the $5.2bn required to fund a $12-a-share dividend in time.

According to the paper, Icahn has told potential lenders that the financing has been delayed partly because he is amending it to address a $3.9bn funding gap Dell's special committee highlighted earlier this month.

A third potential bidder - Blackstone - pulled out of the battle in late April citing concerns over the health of the PC market and Dell's declining financial numbers.

Icahn recently named four candidates to replace Michael Dell should his proxy battle prevail. This included current HP PC and printing boss Todd Bradley and former HP chief executive and current Oracle president Mark Hurd - the latter of whom apparently has "no interest" in the position.

Recently retired IBMer Michael Daniels and current Cisco and former VCE honcho Michael Capellas completed Icahn's shortlist.