HP Now at $2B in Bidding War with Dell for 3PAR

By Chris Preimesberger  |  Posted 2010-08-27 Print this article Print

3PAR received an offer from Dell matching HP's $1.8 billion bid and accepts it, apparently ending the high-stakes bidding war. But HP isn't done.

To say that modestly profitable utility storage maker 3PAR is a company in the right place at the right time would be a massive understatement.

The Dell versus Hewlett-Packard bidding war for the smallish Fremont, Calif.-based enterprise storage company took two huge steps only minutes apart Aug. 27 when 3PAR, by far the hottest property in the storage business, received an offer from Dell matching HP's $1.8 billion bid and accepted it, apparently ending the four-day-long, high-stakes bidding war between the two IT superpowers.

Then, as soon as the word went out about the apparent end to the bidding process, HP lashed back with yet another offer: this time for a cool $2 billion, which at $30 per share is about 11 percent higher than Dell's most recent bid of $27.

Dell's match of HP's offer was written into its original Aug. 23 agreement with 3PAR. HP's offers are unsolicited.

The bidding has gone this way: HP made the original approach to 3PAR a few weeks ago at unannounced terms. Dell countered on Aug. 16 with a $1.15 billion bid; HP followed with $1.5 billion, Dell with $1.6 billion, HP with $1.8 billion, capped by Dell's "final" $1.8 billion offer.

Then came the $2 billion bid. That's where the deal is at this minute, but the way it's going the news could change at any time.

This has been one quick back-and-forth bidding process. Last year's EMC versus NetApp battle for Data Domain, which ended up with EMC paying $2.3 billion for the deduplication storage expert, took several weeks.

Go here to see why 3PAR is such a hot asset.

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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