Storage Soup

Sep 2 2010   4:32PM GMT

Dell backs out, leaving 3PAR to HP

Dave Raffo Dave Raffo Profile: Dave Raffo

So, Dell’s latest offer for 3PAR turned out to be a last-chance hope to land a haymaker rather than an indication of Dell being in the chase for the long haul. About an hour after 3PAR revealed it received new offers from Dell and Hewlett-Packard, Dell threw in the towel. The vendor issued a statement saying it would not try to match HP’s latest bid of $2.35 billion.

“We took a measured approach throughout the process and have decided to end these discussions,”
Dell senior vice president of corporate strategy Dave Johnson said in the statement.

Dell is entitled to a $72 million break-up fee from 3PAR under terms of their Aug. 16 agreement, and HP will acquire 3PAR unless another company makes an unlikely bid.

HP’s winning bid of $33 per share means 3PAR’s stock price more than tripled from $9.65 since Dell’s first offer less than three weeks ago.

Dell’s latest offer of $32 per share was revealed today by 3PAR, which determined HP’s counter was a superior proposal.

Now there is speculation that Dell will look for another storage acquisition instead. Shares of storage systems vendor Compellent, backup software vendor CommVault, and switch maker Brocade all rose today as shareholders anticipate a buyout.

 Comment on this Post

There was an error processing your information. Please try again later.
Thanks. We'll let you know when a new response is added.
Send me notifications when other members comment.

Forgot Password

No problem! Submit your e-mail address below. We'll send you an e-mail containing your password.

Your password has been sent to:

Share this item with your network: