H.P. Wins 3Par as Bidding War Ends
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Dell on Thursday pulled out of the bidding for 3Par , giving the company and its promising cloud technology up for Dell’s rival Hewlett-Packard .
The white flag in technology’s fiercest bidding war this year was raised hours after 3Par announced that H.P. had increased its previous offer by 10 percent, to $33 a share. Dell’s last bid was for $32 a share, after H.P. raised its offer to $30 on Friday. H.P.’s latest offer values 3Par, based in Fremont, Calif., at $2.1 billion.
“We took a measured approach throughout the process and have decided to end these discussions,” Dave Johnson, Dell’s senior vice president for corporate strategy, said in a statement.
Under its previous agreement with 3Par, Dell is entitled to a breakup fee of $72 million.
3Par said in its statement that the board had accepted the H.P. offer as a “superior proposal.”
The battle for 3Par exploded after H.P. landed a counteroffer to Dell’s agreement to acquire 3Par for $18 a share on Aug. 16. The bidding quickly escalated for a company that has lost money in its three years as a public company and for a stock that traded below $10 for most of this year.
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