Dell escalate bidding war with HP for 3Par with $1.6-bn bid

The bidding war to acquire 3Par escalated today with computer maker Dell Inc raising its bid to $1.6 billion, reflecting the emerging strategic importance of data storage firms to computer companies.

Dell today raised its bid for 3PAR Inc by offering $24.30 a share or $1.6 billion, topping an offer of $24 or little under $1.6 billion made by rival Hewlett-Packard (HP).

Dell said that 3PAR had accepted its increased offer, which  is net of 3PAR's cash.

Texas-based Dell had initially on 16 August made an offer to acquire Fremont, California-based 3PAR for $18 per share in cash, (See: Dell to acquire data-storage company 3Par for $1.13 billion) and a week later, HP, the world's No1 personal computer maker made a counter offer of $24 per share in cash, a 33.3-per cent premium on the price proposed by Dell. (See: HP tops Dell's bid for data storage firm 3Par) 

Dell had previously signed an agreement to acquire 3PAR, with a provision for matching competing bids. Dell today said that it and 3PAR have signed an amendment to the agreement reflecting the new offer price.

Both, Dell and HP require huge data storage space and the tools to manage their e-mail, reports, video clips and presentations as well as shore up their presence in the fast-growing IP (Internet protocol) storage segment of the data storage market.