It's Over: HP Bids $33 Per Share for 3Par, Dell Bows Out11:22 AM EST Thu. Sep. 02, 2010
Hewlett-Packard's deep pockets may have proved too much for Dell in the fierce bidding war to acquire 3Par.
HP has emerged as the high-bidder with an offer of $33 per share, nearly $2.4 billion. The bid topped Dell's final offer by $1 per share, and Dell has thrown in the towel, declining to raise its offer any further.
"We took a measured approach throughout the process and have decided to end these discussions," said Dave Johnson, senior vice president of corporate strategy for Dell, in a statement.
After taking a few days off from the bidding war, Dell made a last-ditch offer of $32 per share, but HP immediately responded with the higher counter offer, which 3Par called a "superior proposal." 3Par will pay Dell $72 million as a termination settlement to their original acquisition agreement.
HP did not offer an immediate statement, other to announce the bid and to say that the offer to 3Par will expire on Sept. 24.
Meanwhile, Dell goes back to the drawing board, perhaps looking for other acquisitions to help it expand its enterprise architecture portfolio. "We believe our strategy of creating open, affordable and capable solutions resonates well with customers and will enable us to continue to outgrow the industry," said Johnson in the statement.
The bidding war for 3Par began Aug. 16 when Dell made an initial offer of $18 per share, which was nearly double the $9.65 per share price that 3Par was trading for at the time. The two companies went back and forth for nearly two weeks, raising their offers and counter offers.
Shares of 3Par increased 74 cents or 2.3 percent to $32.83 in Thursday trading after the increased offer was made public. Shares of HP increased 30 cents or 0.8 percent to $39.51 and Dell shares were up 16 cents or 1.2 percent to $12.27 Thursday morning.