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 17,776.93 420.06 2.42%
Nasdaq 4,748.40 104.09 2.24%
S&P 500 2,061.14 48.25 2.40%
Treasuries 2.20 0.06 2.61%
Data as of 4:00pm ET
Company Price Change % Change
Bank of America Corp... 17.46 0.20 1.19%
Apple Inc 112.19 2.78 2.54%
Oracle Corp 45.25 4.09 9.94%
General Electric Co 25.03 0.60 2.46%
Ford Motor Co 14.74 0.29 2.04%
Data as of 3:45pm ET

Sections

Susan Wojcicki said the rate of new moms leaving Google fell by 50% after the company began offering 18 weeks of paid maternity leave. More

The shale boom has been a blessing to Texas, but tumbling oil prices are casting a shadow over the state. More

Susan Wojcicki said the rate of new moms leaving Google fell by 50% after the company began offering 18 weeks of paid maternity leave. More

With two recent IPOs and a digitally-inclined audience of entrepreneurs, non-traditional financing could finally get its big break. More

Payday lenders are spending millions of dollars in Washington in an attempt to get powerful politicians on their side as a government crackdown on the industry heats up. More

Most stock quote data provided by BATS. Market indices 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.

Factset: FactSet Research Systems Inc. 2014. All rights reserved.

Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved.

Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor’s Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2014 and/or its affiliates.