Dell abandons battle to buy 3Par

After a heated bidding battle with HP for data storage company 3Par, Dell withdrew from the contest on Thursday, saying it would not match HP's latest offer of $33 a share.

The announcement came an hour after 3Par revealed the latest bids from both companies, saying that Dell had offered $32 (£21) before HP upped its price. The final deal is worth around $2.4bn, according to 3Par.

3Par also said in a statement that Dell's final offer had included an increased termination fee payable to Dell in the event of the HP purchase, alongside pricing and other terms "that the 3Par board of directors determined to be unacceptable". As it stands, Dell will receive a previously-agreed $72m termination fee.

"We took a measured approach throughout the process and have decided to end these discussions," said Dell senior vice president for corporate strategy Dave Johnson, in a statement.

Dell started the bidding for 3Par on August 16 at $18 a share, just over half the final price. HP subsequently entered the race on August 23 at $24 a share, leading to a chain of bids and counterbids that ended on Thursday.