Carl Icahn, the billionaire investor who strongly opposes Michael Dell's privatization takeover bid, prepared to offer a higher bid for Dell Inc. The plan was ahead of a key shareholder meeting. Icahn initiated the move after proxy companies endorsed Michael Dell's US$24.4 billion buyout deal.

By Friday morning, Icahn said that he would make a higher bid that will include a warrant. This was stated through an interview by Bloomberg TV.

Michael Dell offered the computer maker's shareholders US$13.65 per share piece. On the other hand, Icahn together with Southeastern Asset Management proposed US$14 per share piece. This would sum to a US$1.1 billion tender offer.

He told Bloomberg that the warrant would be around US$20 per share piece. Icahn added that he and Southeastern were going to give a piece of the warrant to the company's shareholders.

A special board committee recommended Michael Dell's offer to the company's shareholders. Meanwhile, Carl Icahn said the founder's offer substantially undervalued the computer maker.