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.