Dell Throws in the Towel After H-P Raises 3Par (PAR) Offer to $33 a Share

Dell Inc. (DELL) said it pulled out of the bidding war for 3Par (PAR) and will not match Hewlett-Packard’s (HPQ) offer to pay $33 per share from $30 for the data-storage provider. Dell boosted its offer for 3Par to $32 Wednesday from $27, but H-P again raised the stakes Thursday morning. In an earlier statement, 3Par said its board of directors determined that H-P’s new offer was a “superior proposal” and notified Dell of its intention to terminate its merger agreement with the Round Rock, Texas-based co. immediately.

Dave Johnson, Dell’s senior vice president for corporate strategy, said the company “took a measured approach throughout the process and decided to end these discussions.” Dell said it’s entitled to a $72 million termination fee.

Hewlett-Packard’s latest offer is more than three times the $9.65 closing price for 3Par stock on Aug. 13, before Dell’s initial bid –$18 per share — was made public.

Dell gained 27 cents, or 2.23 percent, to $12.39 at 1:23 p.m. in Nasdaq composite trading. 3PAR advanced 76 cents, or 2.37 percent, to $32.84.  Shares of H-P rose 21 cents, or 0.54 percent, to $39.42.

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About Ari Haruni 148 Articles
Ari Haruni is the Co-Founder & CEO of Wall Street Pit.

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