HP tops Dell’s offer for 3PAR for third time, bids $2 billion

Again within hours Hewlett-Packard yesterday raised its bid for virtual data storage firm for 3PAR to $2 billion, its third increase in a week, aimed at outbidding Dell's latest offer for an acquisition that has sent the share price of the little-known company to jump 236 per cent since Dell made the first bid just 11 days ago.

As the rapid-fire bids from the largest and the third-largest PC makers showing no clear winner, investors of 3PAR will be laughing all the way to the bank.

A few hours after Dell yesterday matched HP's second time raised offer of $27 per share in cash, or approximately $1.8 billion, net of 3PAR's cash, (See: Dell matches HP's $1.8 billion offer for 3PAR) HP, the world's No 1 computer maker announced that it has increased its proposal to acquire all of the outstanding shares of 3PAR to $30 per share in cash, or an enterprise value of $2 billion.

HP's latest offer is more than three times of 3PAR's closing stock price yesterday, which closed at $32.46 in New York Stock Exchange and a jump of 236 per cent from the nearly $10 per share prior to Dell's first bid made on 16 August 2010. (See: Dell to acquire data-storage company 3Par for $1.13 billion) 

In fact, Dell's first offer of $1.13 billion or $18 per share for 3PAR was itself a premium of 87 per cent, which is considered high in the technology sector.

Dell had signed an initial agreement to acquire 3PAR, with a provision for matching competing bids and will be paid a termination fee of $72 million if 3Par accepts another proposal.