The Blackstone Group has pulled out of the race to buy Dell.
The investment group, together with tech investors Insight Venture Partners and Francisco Partners, had made an original offer of $14.25 per share (£9.28).
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The withdrawal of Blackstone offer follows a bad week for PCs in general, with global first-quarter PC shipments down 14 per cent year-on-year and Dell PC shipments down 11 per cent. This is likely to have added to the concerns of those within the private equity fund who were already expressing doubts about the proposed deal.
It is thought that Blackstone's management and investors were concerned about the investment firm's lack of expertise in the technology sector, as well as the fact that much of Dell's assets are held outside of the US.
Earlier this month the PC maker's founder Michael Dell (pictured) was reported as saying he would only consider backing a Blackstone buyout if he could remain as CEO.
On Thursday, Blackstone's founder and CEO Steve Schwarzman, told analysts: "We had a slow investment rate for the quarter, but I don't look at life in terms of quarters."
Blackstone's offer, which would have kept part of the company in the hands of public shareholders, was withdrawn just four weeks after it announced it would top a rival offer by Michael Dell in conjunction with the Silver Lake Group.
Its withdrawal leaves just two bidders still in play: the Dell/Silver Lake bid, which stands at $13.65 per share for the whole business – and which would take the company private – and a rival bid by activist investor Carl Icahn, who offered to buy 58 per cent of the company for $15 a share.
Earlier this week, Mr Icahn came to an agreement with Dell allowing him to talk to other investors but not to increase his shareholding above 10 per cent.
