(Reuters) - Activist investor Carl Icahn and Southeastern Asset Management Inc, two of Dell Inc's largest shareholders, have proposed an alternative to a $24.4 billion buyout deal led by founder Michael Dell, the Wall Street Journal reported.

Icahn and Southeastern, both vocal opponents of the deal, proposed giving Dell shareholders the option to keep holding stock in the company and take an additional $12 a share in cash or stock in a letter to Dell's board Thursday night, the paper said.

The letter said Icahn and Southeastern together hold 13 percent of Dell's stock. The duo have argued that the buyout effort from Michael Dell and private-equity firm Silver Lake Partners significantly undervalues the company, according to the paper.

In April, Blackstone pulled out just a month after it launched a challenge to the billionaire's attempt to take Dell private. Icahn and Blackstone each offered alternatives that would keep part of the company public.

Representatives for the PC maker could not immediately be reached for comment by Reuters outside of regular U.S. business hours.

(Reporting by Sakthi Prasad in Bangalore; Editing by Edwina Gibbs)

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