The best hope for Dell shareholders of a bid to top the $24.4 billion agreed buyout of the personal computer maker were dashed late on Thursday as it emerged that private equity company Blackstone had abandoned its pursuit of a rival offer.

But with a core group of shareholders still vowing to fight the deal and Dell ­facing a further precarious slide in its core PC business, people close to the deal warned that the outcome was still far from certain.

Early yesterday, stock in Dell fell below the $13.65 per share level of the buyout offer for the first time in more than two months, dropping nearly 4 per cent to $13.44, as Wall Street digested the implications of Blackstone's withdrawal.

Obstacle cleared
The move appeared to clear the biggest obstacle to the agreed transaction put forward by founder Michael Dell and technology buyout firm Silver Lake this year.

One opponent of the deal, however, warned that a fierce battle would still be fought over the shareholder vote Dell must hold ahead of a deal.

Southeastern Asset Management and T Rowe Price, Dell’s two biggest institutional investors, have come out against the offer, with activist investor Carl Icahn also circling.

Even if shareholders vote for the deal, a further legal battle is set to follow with those against bringing a challenge to the valuation of the offer, according to the opponent. Shareholders can exercise what are known as their appraisal rights by asking a judge to set a fair price for the assets of the company.

– Copyright The Financial Times Limited 2013