HP again outbids Dell for 3PAR

chart_ws_stock_3parinc.top.png By David Goldman, staff writer


NEW YORK (CNNMoney.com) -- Hewlett-Packard once again raised its offer for storage company 3PAR on Thursday, outbidding Dell's revised deal made earlier in the day.

HP's new offer is $27 per share, up from its previous bid of $24 a share and Dell's latest offer of $24.30, which was made Thursday morning.

The deal values 3PAR at $1.8 billion, up from the $1.6 billion that Dell offered. HP's latest bid represents a 180% premium over 3PAR's closing price of $9.65 the day before Dell's initial bid.

Both Dell and HP submitted bids for the company last week, but HP raised its bid to just under $1.6 billion after Dell's initial $1.15 billion offer was announced publicly. On Wednesday, 3PAR told Dell that Dell had three days to raise its offer, or it would go with HP's deal.

"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," said Dave Donatelli, general manager of HP's servers and storage unit, in a prepared statement.

As part of 3PAR's revised deal with Dell reached Thursday morning, the storage company would owe Dell $72 million if it accepts HP's higher offer.

3PAR had previously been a relatively unknown data storage company that wasn't necessarily considered a takeover target before the bidding war emerged. The rival hardware companies are both accelerating their cloud computing offerings for their customers, which requires a tremendous amount of storage capacity.

Some analysts say the bidding war is more about keeping an asset away from the other than actually wanting to buy this particular company.

"The data storage business is becoming heated as companies ramp up their cloud offerings," said Eric Johnson, director of the Center for Digital Strategies at Dartmouth University's Tuck School of Business. "You can see motivation on either one's part not to let 3PAR fit into another one's hand, but whether 3PAR is a company everyone needs to have is a different story."

Shares of 3PAR (PAR) rose 6% in after hours trading to $27.60, suggesting some investors think Dell will yet again outbid HP. 3PAR's stock fell 3% during normal trading hours, as investors had believed Dell's second offer would be even higher.  To top of page

Frontline troops push for solar energy
The U.S. Marines are testing renewable energy technologies like solar to reduce costs and casualties associated with fossil fuels. Play
25 Best Places to find rich singles
Looking for Mr. or Ms. Moneybags? Hunt down the perfect mate in these wealthy cities, which are brimming with unattached professionals. More
Fun festivals: Twins to mustard to pirates!
You'll see double in Twinsburg, Ohio, and Ketchup lovers should beware in Middleton, WI. Here's some of the best and strangest town festivals. Play
Index Last Change % Change
Dow 16,979.13 59.54 0.35%
Nasdaq 4,526.48 -1.03 -0.02%
S&P 500 1,986.51 4.91 0.25%
Treasuries 2.43 0.01 0.33%
Data as of 8:51am ET
Company Price Change % Change
Bank of America Corp... 15.52 0.07 0.45%
Apple Inc 100.57 0.04 0.04%
General Electric Co 26.36 0.31 1.19%
Intel Corp 34.50 0.16 0.47%
Staples Inc 11.32 -0.30 -2.62%
Data as of Aug 20

Sections

Russian officials have shut four McDonald's restaurants in Moscow, including the first to open in the city nearly 25 years ago at the end of the Cold War. More

The world is aging rapidly and that's bad news for the global economy, according to a new report by Moody's Investor Service. More

Small business owners say the economy is still their biggest challenge, which keeps them from expanding and hiring, according to a CNNMoney-Manta survey. More

This month, Delaware became the first state to pass a law giving heirs the right to access the online accounts and assets of someone who has passed away. More

Market indexes are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer Morningstar: © 2014 Morningstar, Inc. All Rights Reserved. Disclaimer The Dow Jones IndexesSM are proprietary to and distributed by Dow Jones & Company, Inc. and have been licensed for use. All content of the Dow Jones IndexesSM © 2014 is proprietary to Dow Jones & Company, Inc. Chicago Mercantile Association. The market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. FactSet Research Systems Inc. 2014. All rights reserved. Most stock quote data provided by BATS.