Source: Dell plans sweeter 3Par bid after HP trump

Aug 26, 2010 By JESSICA MINTZ , AP Technology Writer

(AP) -- Dell Inc. is planning a second offer to try to keep data storage maker 3Par Inc. out of Hewlett-Packard Co.'s hands, according to a person familiar with the discussions.

The exact timing and amount of Dell's offer are not known. The person said Dell's bid will likely top HP's offer Monday of $1.5 billion, although according to a filing with the , Dell only needs to match HP's offer to stay in the running.

The person spoke on condition of anonymity because the person is not authorized to speak publicly about the offer.

Dell had previously offered $1.13 billion for 3Par.

Under the terms of the merger agreement spelled out in an Aug. 16 regulatory filing, 3Par can void its agreement with Dell in order to accept a better offer if Dell fails to match the terms in a counteroffer.

In another regulatory filing, made Tuesday, 3Par said its board met to discuss HP's offer, then notified Dell that it planned to engage in talks with HP.

The filing said 3Par, which is based in Fremont, Calif., would continue to recommend a deal with Dell to its shareholders until its board determines that HP's offer is better. If 3Par's board decides it prefers HP's offer, 3Par would notify Dell, and Dell would have three days to respond with another bid.

Both companies see 3Par's data storage technology supporting their race into more profitable markets than personal computers - in this case, "cloud computing." Many companies aren't buying their own for certain tasks anymore, but are instead paying to have software they would have stored on those machines delivered to them over the Internet.

Dell, HP and others are trying to take advantage of the trend by offering those kinds of cloud-computing services directly on a subscription basis, along with the equipment and software for customers to build their own cloud systems.

Data storage is a critical cog in those systems. The technology from 3Par is particularly appealing because it can offer more or less space on the fly, making storage more efficient and less expensive.

Shares of 3Par slipped 28 cents Wednesday to close at $26.76, still more than what Dell and HP are offering on a per-share basis. Shares of , which is based in Round Rock, Texas, gained 20 cents to close at $11.79, while shares of Palo Alto, Calif.-based HP fell 15 cents to close at $38.24.

Explore further: Chinese man brings gay conversion therapy lawsuit

not rated yet
add to favorites email to friend print save as pdf

Related Stories

Dell planning acquisition: WSJ

Jun 11, 2009

US computer giant Dell is planning to acquire a"significant-sized company" in the next few months, The Wall Street Journal reported on Thursday.

HP, Dell win Israeli government tender

May 23, 2006

The Israeli government has reached a supply agreement with the Israeli Dell and HP computer distributors, the business magazine TheMarker reported Tuesday.

Dell: PC demand stable stabilizing

Jul 13, 2009

(AP) -- PC maker Dell Inc. said Monday it expects its fiscal second-quarter revenue to be slightly higher than in the first quarter, when sales plunged 23 percent to $12.3 billion.

Recommended for you

Chinese man brings gay conversion therapy lawsuit

38 minutes ago

(AP)—A gay Chinese man said Thursday he was suing a psychological clinic for carrying out electric shocks intended to turn him straight, as well as the search engine giant Baidu for advertising the center.

Alcatel loss narrows in 2Q but revenue stagnates

1 hour ago

(AP)—Telecommunications equipment company Alcatel-Lucent SA says its net loss narrowed in the second quarter thanks to lower accounting charges, while revenue stagnated and restructuring charges mounted.

Sony surprises with first quarter profit

6 hours ago

(AP)—Sony Corp. reported a surprise eightfold jump in quarterly profit Thursday as sales got a perk from a cheap yen and its bottom line was helped by gains from selling buildings and its stake in a video-game maker.

User comments : 0