Icahn secures $5.2bn funding, seeks Dell meeting

Pledge should 'put an end to unwarranted speculation' about lack of funding, says Icahn

Billionaire investor Carl Icahn is still determined to disrupt Michael Dell's plans to buy out the technology giant, stating he has now secured the $5.2bn in loan commitments he would need for a leveraged recapitalisation.

In his open letter to shareholders, Icahn revealed he has a number of commitments, one of which from Jefferies Finance LLC is worth $1.6bn. His bid also involves asking shareholders to tender 1.1 billion shares at $14 each.

The commitment also includes a $2.2bn, six-year term loan and a $3bn, 3.5-year loan.

Altogether, this amounts to $7.5bn in cash, $5.2bn in credit and $2.9bn from sale of receivables.

In his letter, Icahn said the financial package would "put an end to the unwarranted speculation by Dell that our money would not be available".

Icahn and his partners Southeastern Asset Management claim Michael Dell's rival bid undervalues the company.

Last week, Michael Dell referred to Icahn's plans as "unrealistic", due to a suspected $2.9bn shortfall that would reduce share dividends to $8.15 per share.

The Dell buyout saga has been rumbling on since January, when Michael Dell first announced his intentions after a period of slumping profits at the firm.