3Par: HP's 'Superior Proposal' Trumps Dell's Last Offer


Hewlett-Packard's last offer for 3Par, $30 per share or close to $2 billion, is a "superior proposal" than Dell's last offer, according to 3Par's board of directors.

Barring another, higher counteroffer from Dell, 3Par has notified Dell of its intention to terminate its contract with that company and sign the deal with HP.

HP and Dell have engaged in a fierce bidding war for 3Par, a Fremont, Calif.-based utility storage company, that began Aug. 16 with a Dell offer or $18 per share and went back and forth until last Friday when HP's latest bid reached $30 per share.

3Par can terminate the Dell teal "immediately following the expiration of the three business day period contemplated by, and the satisfaction of the other conditions set forth in, the merger agreement with Dell, in order to enter into the merger agreement with HP on the terms set forth in HP's acquisition proposal," according to 3Par.

3Par's board had previously said they had unanimously accepted Dell's last bid of $27 per share. The board must continue to recommend that offer until the merger agreement expires, but it appears now it will let the proposal expire and pay Dell a $72 million termination fee.

Unless of course, Dell comes back with a higher offer.