Dell And HP Locked In Bidding War For 3PAR

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Most of you will remember that we reported that Dell has put in a bid to buy storage company 3PAR and then HP outbid them. Now it seems that the companies are locked in a bitter bidding war for a company who they both feel is important to each companies strategic plans.

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Lots of people think HP has the upper hand because of its much larger revenue and cash position as it is now offering $27 a share in cash, trumping Dell’s latest of $24.30 a share.  Dell’s counter was just 30 cents a share above HP’s opening bid. Some people feel that the small increase in Dell’s latest offer means that its getting close to its price window and that since HP’s annual revenue is more than twice Dell’s that they will ultimately be successful. In my opinion, I think that Dell can not afford to lose 3PAR to HP, it would be a blow that I don’t know that Dell could recover from. Bottom line is that this deal is much more important to Dell than HP in the long run and they should do whatever they can to not lose this acquisition.

3PAR had said on Thursday morning it accepted Ddelllogoell’s offer and that the two companies raised their termination fee to $72 million from a previous $53.5 million.

3PAR specializes in high-end data storage, a key part of “cloud computing” — an increasingly popular technology that enables computer users to access data and software over the Internet, allowing companies to save costs.  The company competes with EMC Corp as well as IBM and other data storage companies, and 3PAR’s expertise in the high end has made it particularly attractive.

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Lorenzo Winfrey

Lorenzo Winfrey

Editor-In-Chief at ZoKnowsGaming
I am the Co-Ceo of DLT Digital Media. We are a company that is focused on developing new and innovative web properties in addition to developing WordPress based web sites for others. But before I was all that, I was a gamer.
Lorenzo Winfrey