The bidding war lives on. Hewlett-Packard has raised the stakes, again, on its offer for 3Par. HP is now presenting $27 per share, increasing its previous cash bid offered at $24. This is the second time HP has sought to trump Dell’s bid for the Fremont, CA-based 3Par.
The move comes shortly after 3Par accepted Dell’s bid of $24.30, a move that countered HP’s initial ante. The Wall Street Journal reports,
Dell didn’t immediately say whether it would counter H-P’s move, but the original agreement between Dell and 3Par gives it perpetual matching rights–the ability to match any counter-offer within three days. Dell’s most recent offer also carries a $72 million penalty to be paid to the computer maker if 3Par backs out of the merger agreement.
The tit-for-tat actions of HP and Dell were forseen by John Furrier. Take a gander at his in-depth analysis of why this price war has leaped so high. In response to HP’s latest offer, Furrier has this to say,
“As I expected this wasn’t going to end fast. More board room drama and a very public negotiation. HP might just win this due to what I see as more synergy in the deal.
Dell needs 3Par because they don’t have the high mid-range product portfolio, and 3Par fills that gap. This is interesting, since it highlights the need for interoperability–a big challenge for Dell if they buy 3Par. They would need a big unification element to their products – virtualization. For example, I just covered FalconStor yesterday and they just announced more functionality to do this with virtualization.”
In other HP news, the company announced another acquisition this week, adding Stratavia to its Storage Solutions Portfolio offerings. The hardware manufacturer is expected to broaden consumer options around tablets and other mobile devices, with a recent Forrester report citing 14% of consumers plan on purchasing HP’s upcoming Slate.
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