HP outbids Dell with higher takeover offer for 3PAR

NEW YORK: Intensifying the takeover battle for 3PAR, computer maker Hewlett-Packard has again outbid rival Dell making a higher acquisition offer of USD 27 per share for the data storage solutions company.

HP announced the increased bid on Thursday, just hours after Dell made a revised offer for 3PAR at USD 24.30 per share which was accepted by the management of the target company.

In a statement, HP said it has proposed to acquire all the outstanding shares of 3PAR at USD 27 per piece in cash, representing an enterprise value of USD 1.8 billion.

"The proposal represents an 11 per cent premium above the most recent price offered by Dell of USD 24.30 per share," the statement noted.

The race for data storage solutions provider 3PAR began after Dell's initial takeover bid of USD 18 per share on August 16 was met with a higher offer of USD 24 per piece by HP this week.

Meanwhile, Dell's revised offer made yesterday valued 3PAR at USD 1.6 billion.

Acquiring 3PAR is an attractive proposition for both HP and Dell especially against the backdrop of increasing corporate demand for data storage solutions.

HP asserted that buying out 3PAR would boost its storage offerings and diversify its portfolio across key growth markets.

In a separate statement on Thursday before HP made the higher bid, 3PAR had said the company has entered into an amended agreement with Dell.

As per that pact, 3PAR would pay a revised termination fee of USD 72 million in the event of the company accepting "another unsolicited acquisition proposal that its board determines to be superior to Dell's increased offer".

Dave Donatelli, HP's executive vice president and general manager (Enterprise Servers, Storage and Networking) said its revised proposal offers superior value to 3PAR's shareholders.

Once approved by 3PAR's board, the deal is expected to be complete by the end of this year, HP noted.