The arrival Carl Icahn in the middle of the Dell buyout deal creates more drama, but analysts say the main impact is to try to raise the buyout price from its proposed level of $13.65 a share.

The arrival Icahn in the middle of the Dell buyout deal creates more drama, but analysts say the main impact is to try to raise the buyout price from its proposed level of $13.65 a share.

“I don’t think Icahn will be able to do anything more than to raise the bid price,” said analyst Ashok Kumar with the Maxim Group.

“All the saber-rattling makes sense if there is an alternative bidder beyond (Michael Dell),” Kumar said. “But for this deal, there is basically nobody else waiting” to buy the company.

Kumar said he doubts Michael Dell and his investment partner, Silver Lake Partners, will raise the bid much past $15 a share. Taking the bid price beyond that level would require too much borrowing by the buyers and make it harder for Dell to transform itself by acquiring other technology companies.

“A price in the midteens would get all the parties satisfied,” Kumar said. “That would put it in an area where the Dell is still attractive to the buyers. If they (the disgruntled investors) push it too far, it goes into the red zone” and the buyout deal probably falls apart.

Some analysts have already said that if the buyout deal does not go through, Dell’s share price could retreat below $11 a share because of expected continued weakness in the global personal computer market, which still accounts for the lion’s share of Dell’s business revenue.

Dell’s transformation plan is to become more of a one-stop information technology shop that can sell servers, storage networks, networking, software, security and services, all of which have more growth and profit potential than PCs do.

Tech analyst Rob Enderle with the Enderle Group said Icahn’s proposal would dramatically undermine Dell Inc.’s chances of transforming its business and lessening its dependence on PC sales.

“Carl Icahn is just saying (investors should) take the money and run and whatever happens to the company happens,” Enderle said.

“This is why it is so difficult to do a buyout at this scale. You get large investors who try to pressure you. A lot of investors want to get the cash and they don’t care if the company survives. T

“This is kind of why these buyout deals aren’t done that often. Because the short-term greed of some of the investors can just ruin the company.”