Dell Matches HP with 3PAR Offer

Friday Aug 27th 2010 by Kevin Komiega

Another day, another acquisition offer. The Dell-HP tug of war over 3PAR is now even at $27.00 per share.

It’s a back-and-forth worthy of center court at Wimbledon. Dell matched HP’s latest bid for storage vendor 3PAR early this morning with a $1.8 billion offer of its own, putting the ball back in HP’s court.

Dell (NASDAQ: DELL) announced today that 3PAR (NYSE: PAR) has accepted its increased offer to acquire the storage leader for $27.00 per share in cash, or approximately $1.8 billion, net of 3PAR’s cash. The new Dell-3PAR accord was reached under a provision in the existing agreement between the companies that allows Dell to match competing bids.

And match is what they did. Dell bumped up its offer Thursday with a $1.6 billion bid, only to be topped later in the day with HP’s (NYSE: HPQ) $27.00, $1.8 billion proposal.

Industry experts expect the auction will continue past the $2 billion mark.

Dell is sticking to its guns. In a press release, the company stated that its new bid is consistent with its previous rationale for the acquisition and that Dell’s global brand and reach would “dramatically accelerate 3PAR’s revenue growth.”

The company reiterated that the acquisition of 3PAR remains important to its customers and will enhance Dell’s position in utility-storage solutions.

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