HP Wins 3Par Bidding War As Dell Backs Out
The bidding war for 3Par Inc. (NYSE: PAR) ended on Thursday morning, as the data storage company confirmed that Hewlett Packard Co. (NYSE: HPQ) had increased its offer for the company to $33 per share from a previous offer of $30 per share.
The latest agreed upon offer for 3Par from HP came in ahead of rival Dell Inc.’s (NASDAQ: DELL) most recent offer of $32 per share. Dell said just hours later that it would pull out of the running for company.
"We took a measured approach throughout the process and have decided to end these discussions,” said Dave Johnson, senior vice president, corporate strategy. “We believe our strategy of creating open, affordable and capable solutions resonates well with customers and will enable us to continue to outgrow the industry."
Bidding for 3Par began on August 16, when Dell had agreed to acquire the company for $18 per share. With the price now nearly doubling, it remains to be seen just how much further Dell wishes to go in this pursuit.
The two companies have made sophisticated PCs affordable through price wars in recent years, but the cost of parts has risen and profits have shrunk. The companies see previously little known 3Par as a tool to improving their “cloud computing” businesses, as more companies are moving to in to the cloud rather than buying their own servers.
HP said that it expects the deal to close by the end of the fourth quarter.
Shares of 3Par are up 2.34 percent to $32.83 in premarket trade Thursday, while shares of HP are up 32 cents to $39.53 and Dell shares are up 17 cents to $12.29.
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The latest agreed upon offer for 3Par from HP came in ahead of rival Dell Inc.’s (NASDAQ: DELL) most recent offer of $32 per share. Dell said just hours later that it would pull out of the running for company.
"We took a measured approach throughout the process and have decided to end these discussions,” said Dave Johnson, senior vice president, corporate strategy. “We believe our strategy of creating open, affordable and capable solutions resonates well with customers and will enable us to continue to outgrow the industry."
Bidding for 3Par began on August 16, when Dell had agreed to acquire the company for $18 per share. With the price now nearly doubling, it remains to be seen just how much further Dell wishes to go in this pursuit.
The two companies have made sophisticated PCs affordable through price wars in recent years, but the cost of parts has risen and profits have shrunk. The companies see previously little known 3Par as a tool to improving their “cloud computing” businesses, as more companies are moving to in to the cloud rather than buying their own servers.
HP said that it expects the deal to close by the end of the fourth quarter.
Shares of 3Par are up 2.34 percent to $32.83 in premarket trade Thursday, while shares of HP are up 32 cents to $39.53 and Dell shares are up 17 cents to $12.29.
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