THE WALL STREET JOURNAL
Hewlett-Packard Co. (HPQ) boosted its offer for 3PAR Inc. (PAR) yet again, to $2.1 billion, and the maker of storage products used in cloud computing intends to terminate its deal with Dell Inc. (DELL) as H-P's latest offer was deemed "superior" to 3PAR's agreement with Dell, 3Par said.
3Par shares were up 4.7% at $33.60, showing investors believe the bidding war still isn't done. Dell was off 2 cents at $12.10 and H-P declined 3 cents to $39.18.
The latest salvo in a bitter bidding war between the two technology giants comes more than two weeks after Dell initially announced its agreement to buy 3PAR for about $1.2 billion in cash, or $18 a share. On Aug. 23, H-P publicly announced its offer of $24 a share, which it proceeded to raise twice last week in two three-dollar increments. The latest offer is $33 a share.
Last Friday, H-P raised its offer for 3PAR to $30 a share, giving Dell three days to match the offer under the terms of its existing merger agreement or drop out of the bidding. Dell's executives were exploring alternative proposals to save its deal to buy 3PAR, originally announced on Aug. 16, and mostly recently bid $32 and increased the termination fee.
Dell still has three days to match the bid and it continues to evaluate its options, people familiar with the matter told The Wall Street Journal.
-By Tess Stynes and Anupreeta Das, Dow Jones Newswires; 212-416-2481; Tess.Stynes@dowjones.com;