"I withdrew my demand for appraisal of my Dell shares. Based on our returns on capital, we believe we have better uses for $2 billion," Icahn wrote in a message posted online, The New York Times reported Saturday.
Icahn had taken a number of steps to derail the sale of Dell for $24.9 billion to its founder Michael Dell and an investment firm, Silver Lake. Prior to shareholders approving the sale, Icahn had considered assembling his own bid for the company, which he said was undervalued in the offer shareholders approved.
A share appraisal is within the rights of shareholders of firms incorporated in Delaware, the Times said.
The problem for the company is that it could take months to complete. Testimony is heard from both sides before shares are assessed a value.
There is also a risk to shareholders that the value could be assessed at a price below the sale price, the Times said.
The company confirmed Icahn had withdrawn his demand, the newspaper said.