HP Wins Bid For 3PAR After Dell Backs Out

Dell Inc. (NASDAQ:DELL) decided to back out of an acquisition deal of cloud data storage company 3PAR after there was a bidding war with Hewlett-Packard Company (NYSE:HPQ). Dell said that they will not increase their $2 billion proposal for 3PAR. As part of the deal, Dell is entitled to a $72 million break-up fee from 3PAR.

HP offered $33 per share, making their bid worth $2.4 billion for 3PAR. 3PAR accepted the deal from HP. Dell originally offered to buy out 3PAR for $18 per share or $1.13 billion. HP and Dell got into a bidding war after that. HP offered $1.6 billion. Dell upped it to $1.8 billion. HP offered $2 billion. Dell matched it. HP counter-offered it once again and essentially won the bidding war. 3PAR has technology that enables disk space to be allocated only when applications need the capacity.


This article was written by Amit Chowdhry. You can follow me at @amitchowdhry or on Google+ at
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