That didn't take long: HP has called Dell's 30 cent bump to its previous offer and raised it another $2.70 per share to acquire storage vendor 3Par. That brings the high bid to $27 per share, or $1.8 billion, an 11 percent jump over Dell's offer of $24.30 earlier today.
It also raises the amount that Dell, a part-owner of 3Par, would receive as a termination fee. Under the latest HP offer, Dell would collect $72 million if 3Par went with HP, according to filings with the Securities and Exchange Commission.
In an environment where high-end storage vendors are few, both HP and Dell have the same idea: Take 3Par’s technology and distribute it through a large sales channel.
In a statement released after the close of the market today, HP executive Dave Donatelli said:
Our revised proposal offers superior value to 3PAR’s shareholders, while maintaining our disciplined approach to only pursuing acquisitions that we believe will strengthen our portfolio and create long-term value for our shareholders. Not only is our offer superior to Dell’s proposal, HP remains uniquely positioned to execute on this combination given the number of synergies between the two companies.
Shares of 3Par were down about 2 percent in regular trading, closing at $26.03. Shares were up more than 5 percent to top $27 in after-hours trading. Before the bidding war started, shares had been trading in the $9-$10 range.
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