(Reuters) - Dell Inc, the world's No. 3 PC maker, is in talks with private equity firms on a potential buyout deal, a source familiar with the matter said.

Dell declined to comment on what it called rumors and speculation. Bloomberg reported the news earlier.

The PC maker, which has steadily ceded market share to larger rival Hewlett Packard and China's Lenovo, had also explored the option of going private a few years ago.

(Reporting By Jessica Toonkel and Nadia Damouni; Editing by Bernard Orr)