Dell Outbids HP in 3PAR Buy-out Race

Aug. 26, 2010
Dell said that the 3PAR acquisition complements and extends the breath of Dell's storage portfolio.

Dell said on August 26 that it had improved its bid to buy-out data storage firm 3PAR to $1.6 billion, beating Hewlett-Packard's offer in a battle between the two computer-making giants.

Dell and 3PAR both announced that the utility storage provider has accepted Dell's increased offer for $24.30 per share in cash, 30 cents higher than HP's offer from August 23.

"Dell and 3PAR have signed an amendment to the agreement reflecting the new offer price," they said. Dell and 3PAR first announced the acquisition deal last week.

The California-based 3PAR on August 24 gave Dell three days to revise its acquisition offer after HP offered $24 per share in cash, six dollars higher than Dell's initial offer.

It is likely that HP would put forward a second bid as the two titans struggle to gain an edge with advanced and more complex computer systems as the personal desktop and laptop market nears its peak, analysts said.

"3PAR has the opportunity to look at competing offers. We would be able to match an additional bid," Dell spokesman David Frank said.

Dell said that "the 3PAR acquisition complements and extends the breath of Dell's storage portfolio."

HP said the acquisition would accelerate its so-called "converged infrastructure strategy, which provides customers with an unmatched portfolio of intellectual property across storage, server and networking solutions."

Copyright Agence France-Presse, 2010

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