3PAR says HP's offer 'superior'; may call off pact with Dell
Press Trust of India / New York Aug 28, 2010, 17:45 IST
Data storage solutions provider 3PAR, which is at the centre of an intense takeover battle, has said that computer maker Hewlett-Packard's $30 per share offer is "superior" to the bid made by Dell.
3PAR has also notified Dell about its intention to terminate the merger agreement between the two companies.
"(Our) board of directors has determined that the unsolicited proposal by HP to acquire all of 3PAR's outstanding common stock at $30 per share constitutes a superior proposal," 3PAR said in a statement on Friday.
The statement came on a day of fast-paced developments that saw both HP and Dell making higher takeover offers. HP raised its bid to $30 per share, just hours after 3PAR accepted Dell's revised offer of $27 per piece.
HP's latest proposal values 3PAR at around $2 billion.
"The board of directors notified Dell of its intention to terminate the merger agreement with Dell...," 3PAR said on Friday.
As per the existing agreement between 3PAR and Dell, the former would pay a break-up fee of $72 million to Dell, in case the data storage solutions firm accepts a better offer.
The buyout of 3PAR is an attractive proposition for both HP and Dell, especially against the backdrop of increasing corporate demand for data storage solutions. The acquisition would also help in bolstering the two companies' offerings in the cloud computing business.
Dell on Friday hiked its bid for 3PAR to $27 from $24.30 per share yesterday. Dell's increased offer came in response to HP's higher bid of $27 per piece announced on Thursday.
The takeover tussle erupted after Dell's initial takeover bid of $18 per share on August 16 was met with a higher offer of $24 per piece by HP this week.
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Data storage solutions provider 3PAR, which is at the centre of an intense takeover battle, has said that computer maker Hewlett-Packard's $30 per share offer is "superior" to the bid made by Dell.
