HP Would Have Gone Higher for 3PAR

Friday Sep 10th 2010 by Enterprise Storage Staff
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HP’s interim CEO said the company was willing to go higher than its final $2.4 billion offer to win the highly publicized bidding war with Dell over storage vendor 3PAR.

There is no love lost between HP and Dell. In what could be perceived as a case of adding insult to injury, HP’s chief financial officer and interim CEO, Cathie Lesjak, boasted that the $2.4 billion winning bid for storage vendor 3PAR was below its “walk-away price,” sister site ITChannelPlanet reports.


“[HP] (NYSE: HPQ) paid less for storage vendor 3PAR, Inc., (NYSE: PAR) than its ‘walk-away price,’ chief financial officer and interim chief executive Cathie Lesjak told attendees at the Citigroup Global Technology Conference held this week in New York.

“‘In the case of 3PAR, obviously it was a competitive bidding situation,” Lesjak said. “We had a walk-away price, we got it below our walk-away price and we believe it will generate more than its cost-to-capital,’ she said.

“Lesjak did not reveal the price at which HP would have turned away from the bidding or how close the actual purchase price came to the vendor's top end figure.

“HP won a much-publicized bidding war with Dell, Inc., (NASDAQ: DELL) for 3PAR when the $200 million storage vendor accepted HP’s $33 a share, or $2.4 billion, offer and rejected Dell’s last ditch $32 per share revised proposal.

“Dell subsequently declined to raise its offer for 3PAR and withdrew from the bidding.”

Read the Full "HP Had Room to Spare in 3PAR Bidding War, Top Exec Says" Story at ITChannelPlanet.

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