HP Again Tops Dell's Latest Bid for 3PAR

By Chris Preimesberger  |  Posted 2010-09-02 Print this article Print

Hewlett-Packard takes only minutes to snap back with a higher offer after Dell takes three full days to tender its offer. Bidding now up to about $2.07 billion.

The 10-day-old bidding war between two stubborn IT superpowers over a relatively small storage company went up another level Sept. 2 when Dell increased its standing offer for 3PAR from $27 to $32 per share, with Hewlett-Packard subsequently upping its own to $33 from $30 a few minutes later.

Dell had faced a deadline by midnight Sept. 1 to respond to 3PAR about HP's $30 offer. All of HP's offers are in cash; Dell's involve a portion of stock. The prices discussed are average prices, since there are varying levels of stock in 3PAR available.

The math regarding the total amount to be paid for 3PAR is a bit fuzzy because of those differing prices on enterprise and common stock. The Associated Press ventured that if HP's $33 offer were to stand, the total price of the transaction would be $2.07 billion.

Immediately after HP's $33 offer, 3PAR released a statement acknowledging it as a superior offer to Dell's. Again, the Fremont, Calif.-based 3PAR is giving Dell another three business days to respond.

Dell did not immediately return calls for comment.

3PAR is considered a prime asset primarily for three reasons:

No. 1: Its clustered, utility-type architecture is tailor-made for cloud systems that deliver software as a service, and cloud storage systems are in high demand at this time.

No. 2: 3PAR began shipping its own brand of autonomic storage tiering, called Adaptive Optimization. The process actually prevents common storage bottlenecks from happening in the first place through a combination of business and operational intelligence, gained by a constant collection of data. 3PAR's version anticipates data blockages and solves them before they happen.

3PAR Adaptive Optimization follows this concept to enable high-end-type storage systems to achieve an efficient distribution of data over the application life cycle, without needing intervention by an administrator, the company says.

No. 3: The company is available for sale. Others that address the exact market as 3PAR are not available, Dell said.

For more background, see the following eWEEK articles:

Dell, HP Stubbornly Raise Stakes in Bidding War for 3PAR

Why is 3PAR such a hot property?

Dell explains why 3PAR is strategic to its needs

HP's motives in the bidding war


Chris Preimesberger Chris Preimesberger was named Editor-in-Chief of Features & Analysis at eWEEK in November 2011. Previously he served eWEEK as Senior Writer, covering a range of IT sectors that include data center systems, cloud computing, storage, virtualization, green IT, e-discovery and IT governance. His blog, Storage Station, is considered a go-to information source. Chris won a national Folio Award for magazine writing in November 2011 for a cover story on Salesforce.com and CEO-founder Marc Benioff, and he has served as a judge for the SIIA Codie Awards since 2005. In previous IT journalism, Chris was a founding editor of both IT Manager's Journal and DevX.com and was managing editor of Software Development magazine. His diverse resume also includes: sportswriter for the Los Angeles Daily News, covering NCAA and NBA basketball, television critic for the Palo Alto Times Tribune, and Sports Information Director at Stanford University. He has served as a correspondent for The Associated Press, covering Stanford and NCAA tournament basketball, since 1983. He has covered a number of major events, including the 1984 Democratic National Convention, a Presidential press conference at the White House in 1993, the Emmy Awards (three times), two Rose Bowls, the Fiesta Bowl, several NCAA men's and women's basketball tournaments, a Formula One Grand Prix auto race, a heavyweight boxing championship bout (Ali vs. Spinks, 1978), and the 1985 Super Bowl. A 1975 graduate of Pepperdine University in Malibu, Calif., Chris has won more than a dozen regional and national awards for his work. He and his wife, Rebecca, have four children and reside in Redwood City, Calif.Follow on Twitter: editingwhiz

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