|HP outbids Dell in round one for 3PAR|
Computer maker HP has upset rival Dell's plans to acquire virtualized storage solutions company 3PAR by offering more money for the target.
HP has submitted a proposal to 3PAR Inc. that offers $24.00 per share in cash, or an enterprise value of $1.6 billion. Last week, Dell had announced an agreement to acquire 3PAR in a transaction valued at approximately $1.15 billion net of 3PAR’s cash, paying $18 per share in cash. HP said its offer represented a 33.3 percent premium to the price proposed by Dell.
HP said adding 3PAR's next-generation storage architecture will accelerate its winning Converged Infrastructure strategy, which provides customers with a portfolio of intellectual property across storage, server and networking solutions.
HP's bid, reports said, saw 3PAR shares soar almost 40% to $25.29, suggesting that the markets expect a counter offer possibly from Dell. Prior to Dell's last week announcement of the proposed acquisition, 3PAR last traded at $9.65. Reports also said that a number of analysts expect the bidding war to last a while, given that Dell had $13.1 billion in cash and investments on its balance sheet as of July 30 while rival HP had $14.7 billion in cash and cash equivalents.
"HP's proposal offers superior value to 3PAR's shareholders. Our global reach, strong routes to market and commitment to innovation uniquely position HP as the ideal fit for 3PAR," said Dave Donatelli, executive vice president and general manager, Enterprise Servers, Storage and Networking, HP. "We've seen great momentum with our Converged Infrastructure strategy, and 3PAR accelerates that strategy, particularly in cloud and scale-out markets."