Dell walks away: HP wins 3Par for $2.4 billion

Dell walks away: HP wins 3Par for $2.4 billion

Summary: Hewlett-Packard officially won storage vendor 3Par after Dell declined to match a $33 a share, or $2.4 billion, bid.

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Hewlett-Packard on Thursday officially won storage vendor 3Par after Dell declined to match a $33 a share, or $2.4 billion, bid.

Dell's statement on the matter ended a wild bidding war that started at $18 a share for 3Par. Dell said in a statement that it will get a $72 million breakup fee. The company added that its final offer was for $32 a share.

The 3Par bidding war reflected the animosity between two fierce rivals, Dell and HP, and the fact that there aren't many enterprise storage players to buy.

Earlier on Thursday, 3Par said Hewlett-Packard has raised its offer to $33 a share for the storage company, or $2.4 billion, after Dell countered with a $32 a share offer. 3Par deemed HP's bid as superior. HP had bid $30 for 3Par and Dell countered with $32 a share. Dell also revised a termination fee to $92 million.

3Par outlined what happened in a statement (my emphasis added):

Although 3PAR previously notified Dell of its intention to terminate its merger agreement with Dell, the merger agreement was not terminated and remains in full force and effect. Following 3PAR's notice of intent to terminate the merger agreement, and prior to receiving HP's revised acquisition proposal, 3PAR received a revised acquisition proposal from Dell in which Dell increased its offer price from $27 per share to $32 per share. Dell's revised acquisition proposal also included an increased termination fee of $92 million payable by 3PAR to Dell as a condition to accepting a "superior proposal," and a multi-year reseller agreement with Dell, which would by its terms be assumed by an acquirer of, or successor in interest to, 3PAR in the event of a change in control of 3PAR (including the acquisition of 3PAR by HP or another third party), and which contained fixed pricing and other terms that the 3PAR board of directors determined to be unacceptable.

Now that HP has won 3Par it will have another integration effort ahead. HP has been on a buying spree of late, but moved to reassure investors with a $10 billion buyback plan.

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Topics: Dell, Banking, Data Centers, Enterprise Software, Hardware, Hewlett-Packard, Storage

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32 comments
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  • Buyer's remorse? (nt)

    nt
    Economister
    • Why? lol... strange statement for a company that can afford it!

      @Economister Dell can ill afford to put a foot out in front of a GIANT! HP has proved they have the funds and balls to play hardball! ....Dell lost it years ago and just don't have the income to match HP's!

      Want to play with the big boys..... you better play with your biggest bats and so what if you break one cracking a competitor over the head. MS tosses that much away on things like the FAILED Kin and Lawsuits!!! haha...

      Why should they (HP) let so much money just set in the bank? They're just not as stupid as CrApple's Steve Jobs hoping he can take it with him when he kicks the bucket!!! ....har....har.... :P
      i2fun@...
  • RE: Dell walks away: HP wins 3Par for $2.4 billion

    The End ..
    glalblog
    • RE: Dell walks away: HP wins 3Par for $2.4 billion

      Its all about the race against the time to build one. However is it that expensive?
      udx
  • $92 billion? I think that should be $92 million

    [i]Dell also revised a termination fee to $92 [b]billion.[/b][/i]
    ye
    • RE: Dell walks away: HP wins 3Par for $2.4 billion

      @ye fixed. they wish it were 92 billion.
      Larry Dignan
  • 3par's servers

    I wonder if they are Dell or HP, tee hee...
    deepee912
  • The only ones happy with this acquisition

    will end up being the investors who own stock in 3par. They now own stock that is worth more than 3 times its actual value. As for HP, they can now open a zoo, first in the collection: an albatross and a white elephant. ;)
    Carrion
    • RE: Dell walks away: HP wins 3Par for $2.4 billion

      <i>As for HP, they can now open a zoo, first in the collection: an albatross and a white elephant.</i><br><br>@Carrion I suspect that's what the turnout will be. Contrary to i2fun's [i]crapple babble[/i] up above. <br><br>A big, expensive lemon they'll have to unload in the next couple of years.
      ahh so
  • I think Dell won here, they walk away with 92 million. HP overpaid for an

    asset they really do not need, to keep it out of a competitors hands.
    DonnieBoy
    • RE: Dell walks away: HP wins 3Par for $2.4 billion

      @DonnieBoy - it's actually $72 million, but it's still a lot of money. If 3par had accepted the last Dell offer, the termination fee would have been $92 million.
      Carrion
      • Thanks! Well, 74 million will help fund Dell research into how to

        fill out product lines. But, time to market is verything . . . .
        DonnieBoy
      • Let the Streak and Aero benefit ;-]

        @Carrion <br><br>Now maybe Dell can splurge for a few more developers to bring their Android devices up to the latest version...
        The Breeze
      • RE: Dell walks away: HP wins 3Par for $2.4 billion

        @The Breeze

        Amen to that - not overly happy with that huge chunk of glass they put on the front of the Streak. I don't care if it is "Gorilla Glass", it's still going to be too easy to crack! There are some scratch resistant plastics out there that would be a better alternative...
        Carrion
  • RE: Dell walks away: HP wins 3Par for $2.4 billion

    Wow, I am surprised the ytook that lying down.

    Lou
    www.real-privacy.ua.tc
    zoowing
  • RE: Dell walks away: HP wins 3Par for $2.4 billion

    I honestly think Dell's plan was to drive the price up for HP as high as they could and then walk away with a payout, which is exactly what they did.
    rdawson@...
    • RE: Dell walks away: HP wins 3Par for $2.4 billion

      @rdawson@... Exactly how it looks- I wonder when it will set in with HP how much they just paid?
      unclefixer@...
  • So, what's up with HP?

    HP has laid off workers and destroyed the morale and loyalty of those remaining through their severe cost cutting management. This resulted in massive profits, which they have been spending on one acquisition after another. HP for many years was considered to be one of the best companies in the world to work for, and generally produced some quality goods with excellent service. Now, morale is down, quality is declining, and service is abysmal. I have to believe that this was a factor in their recent management changes. Profits and expansion are not bad things, unless the company is fundamentally damaged in the process. One has to wonder just what is going on at HP.
    itpro_z
    • RE: One has to wonder just what is going on at HP.

      @itpro_z <br><br>I wonder too about that one. I think Dell outsmarted HP, and forced HP to blow far more cash than HP wanted, just so some ego stroked CEO can brag that She bagged `this company`.<br><br>These CEO types are nothing but overpaid HIRED HELP, only in it for the money; and as long as they can fatten their wallets, no matter at whose expense, they will continue to do it. IMHO, Hurd should have been given a SKITA (aka Swift Kick In The A--); no severance pay, no severance benefits. Any low ranked employee would have been booted out the door so fast his or her head would spin.<br><br>If I were a stockholder of HP, my first question would be: "What in h--- did I get for the money spent?" I believe that HP just threw away a lot of cash, and only the shareholders of 3PAR got rich; and I as an HP stockholder got screwed!!!!
      fatman65535
    • RE: Dell walks away: HP wins 3Par for $2.4 billion

      @itpro_z
      I know what's going on. They are ramping up for something new. They own the only known patent for memristors which they just entered into an agreement to get to manufacturing. Memristors are sort of small in the news but huge in potential impact as they are more or less the LAST component in orthodox computing.
      Buying up a storage company puts them in place to put this technology directly into the enterprise area where it will be most valued.
      A couple billion today to put their company in the right places when they need to be will more than pay for the seemingly high cost.
      kwabinalars