Carl Icahn, an activist investor, has said that it is increasing the offer price for a stake in computing giant, Dell to $5 billion.

Mr. Icahn increased the bid value by almost double and also asked the company to issue a tender offer for 1.1 billion shares at $14 each. He wrote in a letter to Dell shareholders and members of its special committee that he has already secured lender commitments for $5.2 billion in debt financing. He pointed out that the remarks would dispel suggestions that the funds will not be available for the acquisition.

A special committee entrusted with the task of evaluation investment proposals in computing giant, Dell has said that it is backing a buyout proposal by Silver Lake Partners and founder Michael Dell that offers $13.65 a share to the shareholders.

The backing of the proposal is a major setback for activist investor Carl Icahn. The special committee has written to the shareholders of Dell recommending them to vote in favour of Silver Lake and Michael Dell's takeover during the company's shareholder meeting on July 18, 2013.

Icahn, Southeastern and other large independent shareholders such as T. Rowe Price have already said that they will not vote in favour of Silver Lake's buyout offer. Carl Icahn and Southeastern Asset Management might continue to ask that the company pay a special dividend from its cash and financing.