HP wins 3PAR bidding war after Dell drops out

By David Goldman, staff writer


NEW YORK (CNNMoney.com) -- The 3PAR bidding war finally came to its conclusion Thursday after Dell conceded victory to Hewlett-Packard.

The winning bid was HP's offer of $33 a share, or $2.1 billion -- a stunning 242% premium over the value of 3PAR's stock before the bidding war between Dell and HP began on Aug. 16.

That was too rich for Dell's blood, the company said.

"We took a measured approach throughout the process and have decided to end these discussions," Dave Johnson, Dell's senior vice president of corporate strategy, said in a prepared statement.

3PAR had previously notified Dell that it would go with HP's offer of $30 a share, made Aug. 27, but Dell came back with a revised offer of $32 a share. HP then topped that offer with a bid of $33 a share, or $2.1 billion, 3PAR said Thursday.

Dell had three days to match or improve upon HP's bid, but it opted instead to end its pursuit. 3PAR now owes Dell a $72 million breakup fee to terminate its earlier agreement with Dell.

Dell attempted to negotiate a higher termination fee of $92 million in its latest bid, but 3PAR actually never accepted that offer, calling some of its terms "unacceptable."

The latest offers represented the eighth and ninth bids for 3PAR between the two tech giants. Dell's first bid, for $18, came three weeks ago, kicking off a fierce bidding war.

Dell and HP had both sought out 3PAR for its portfolio of high-end data storage technology, which is a necessary component of the high-growth cloud computing business. Cloud computing enables companies to remotely access applications stored and managed in off-site data centers. The process is cheaper and more efficient than traditional models.

Both Dell and HP license others' technology for their cloud computing offerings. They saw 3PAR as a relatively cheap acquisition and the easiest way into a high-growth business. But the company quickly grew much more expensive.

Shares of HP (HPQ, Fortune 500) rose 1%, and Dell's (DELL, Fortune 500) stock also rose 1% after falling earlier in the day. Shares of 3PAR (PAR) rose 2% to $32.83 after rising as high as $33.84 Thursday morning. 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 17,965.91 -104.49 -0.58%
Nasdaq 4,946.80 -70.13 -1.40%
S&P 500 2,095.39 -19.10 -0.90%
Treasuries 2.19 0.06 2.62%
Data as of 1:30pm ET
Company Price Change % Change
Bank of America Corp... 16.43 -0.01 -0.06%
Apple Inc 126.09 -2.61 -2.03%
Regions Financial Co... 10.00 0.02 0.20%
Microsoft Corp 47.75 -0.49 -1.02%
Ford Motor Co 15.61 -0.17 -1.08%
Data as of 1:15pm ET
Sponsors

Sections

Wells Fargo employees opened unauthorized accounts, costing customers money and damaging their credit, to meet unrealistic sales quotas according to fraud complaint. More

President Vladimir Putin announced a new reserve fund for the BRICS nations that could attempt to rival the IMF. More

Harrison Brammell is an 11-year-old fifth grader who is obsessed with coding and live-streaming. And he's good too. More

The London-based startup is on a quest to democratize access to technology and coding with its computer company. More

Lack of wage growth and career opportunities along with long hours are most likely to make someone say "Sayonara, boss," according to a new global survey of full-time employees. More