Activist investor Carl Icahn, along with his partner Jefferies & Co., have secured billions in financing for their Dell bid, a new report claims.
The investors have secured $5.2 billion in loans from several banks and institutional investors, Reuters is reporting, citing people who claim to have knowledge of the deals. Those funds will help Icahn and company finance their Dell buyout proposal.
According to Reuters' sources, the $5.2 billion includes a 6-year loan worth $2.2 billion, as well as a 3.5-year loan for $3 billion. The sum is part of a much broader plan on Icahn's part to essentially take control over the company and provide an alternative to Michael Dell's $24.4 billion buyout deal that would take his company private.
In a Securities and Exchange Commission filing last month, Dell argued that Icahn "has failed to provide any of the key provisions and mechanics" of his deal, and had yet to secure committed financing for his proposals. If Icahn has indeed secured the $5.2 billion, he might be closer to satisfying some of the Dell board's concerns.
Meanwhile, Icahn has slowly started taking more control over Dell. Last month,, making him the second-largest Dell shareholder.