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Dell (DELL) Throws in the Towel in 3PAR (PAR) Bid; Will Receive $72M Break-Up Fee

September 2, 2010 10:28 AM EDT
DELL Hot Sheet
Overall Analyst Rating:
    NEUTRAL (= Flat)
Dell (Nasdaq: DELL) announced today that it has thrown in the towel, and will not continue acquisition talks with 3PAR (NYSE: PAR). This morning, Hewlett-Packard (NYSE: HPQ) made a $33 per share bid for 3PAR, about $1 above what Dell was offering.

Dell is entitled to receive a $72 million break-up fee from 3PAR upon the termination of its merger agreement.

According to the release: “We took a measured approach throughout the process and have decided to end these discussions,” said Dave Johnson, senior vice president, corporate strategy.

“We will continue to put the interests of our customers and shareholders at the forefront of all our decisions,” said Brian Gladden, chief financial officer. “Our focus is to create long-term value.”


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