HP victorious in bidding war for 3Par after Dell pulls out
Hewlett-Packard appeared to have won the bidding battle for data storage technology company 3Par yesterday, after Dell said it would not raise its offer and was ending talks.
HP made a $33-a-share offer yesterday, valuing loss-making 3Par at about $2.4bn (€1.9bn) and outbidding rival PC maker Dell for the fourth time in less than three weeks.
The bidding war began after Dell made an $18-per-share friendly offer for 3Par on August 16. 3Par shares closed at $9.65 just before Dell unveiled its original offer.
The premium underscores the importance of data storage and analysis, as big businesses shift towards cloud computing, where information is housed remotely rather than on users' computers.
HP's offer is a "superior proposal", 3Par stated yesterday. The Fremont, California-based company said it notified Dell of its intention to terminate their merger agreement.
3Par also said that Dell's latest offer included an increased termination fee of $92m if 3Par accepts a different offer.
HP, the world's largest PC maker, and Dell, which is No 3, are battling to add 3Par's data-centre products that would help them compete with storage leaders like EMC.
HP's offer is more than three times the $9.65 closing price for 3Par stock on August 13, before Dell's initial bid was made public. The premium reflects a growing urgency for the computer makers to use acquisitions to fuel growth.