Thursday, September 2, 2010

HP wins 3PAR for $2.4 bn, Dell bows out

Dell on Thursday pulled out of the bidding for 3Par, giving the data storage company and its promising cloud technology up for rival Hewlett-Packard.The white flag in technology’s fiercest bidding war this year was raised hours after 3Par announced that H.P. had increased its previous offer by 10 percent, to $33 a share. Dell’s last bid was for $32 a share, after H.P. raised its offer to $30 on Friday. H.P.’s latest offer values 3Par, based in Fremont, Calif., at $2.1 billion.“We took a measured approach throughout the process and have decided to end these discussions,” Dave Johnson, Dell’s senior vice president for corporate strategy, said in a statement.Under its previous agreement with 3Par, Dell is entitled to a breakup fee of $72 million.3Par said in its statement. 3Par said its board had accepted the H.P. offer as a “superior proposal.”The battle for 3Par exploded after H.P. landed a counteroffer to Dell’s agreement to acquire 3Par for $18 a share on Aug. 16. The bidding quickly escalated for a company that has lost money in its three years as a public company and for a stock that traded below $10 for most of this year.