3Par accepts new bid from Dell worth $1.8 billion

Aug 27, 2010

(AP) -- 3Par Inc. said Friday it has accepted computer maker Dell Inc.'s new offer of $1.8 billion which matches a bid for the data storage provider from Hewlett-Packard Co.

The latest move raises the stakes in the bidding war for the little-known company.

The $27-per-share offer is worth three times the price of 3Par before the bidding war broke out earlier this month.

3Par, of Fremont, Calif., said its board continues to recommend the offer.

In premarket trading, 3Par shares surged nearly 10 percent to $28.55 from Thursday's close of $26.03.

HP and Dell, two of the world's largest personal computer makers, are looking at 3Par as a way to build up their "cloud computing" businesses, which involve delivering , and other services to customers over the Internet.

Cloud computing holds the promise of richer profits for technology providers because many companies aren't buying their own for certain tasks anymore. Instead, they're paying to have software they would have stored on those machines delivered to them over the Internet.

Dell, HP and others are riding this 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.

Dell is based in Round Rock, Texas. HP is headquartered in Palo Alto, Calif.

Explore further: Microsoft to launch first flagship store outside US in Sydney

0 shares

Related Stories

HP blasts back with new bid for 3Par, besting Dell

Aug 26, 2010

(AP) -- Hewlett-Packard Co. has again raised its bid for 3Par Inc. above an offer from rival Dell Inc., suggesting that the little-known data-storage maker could be worth more with one of the PC companies' ...

Recommended for you

IBM earnings dip as sales fall again

10 hours ago

Technology heavyweight IBM reported Monday lower profits in the first quarter following another drop in revenues, this time partly due to the strong dollar.

Global, Chinese automakers debut new car models

22 hours ago

Ford showed off its new Taurus and Nissan unveiled a midsize sedan designed for China on Monday at a Shanghai Auto Show that highlighted the commercial resurgence of lower-priced Chinese auto brands.

Germany still has some way to go to 'smart factories'

Apr 19, 2015

Collaborative robots and intelligent machinery may have wowed the crowds at this year's Hannover Messe, but experts see German industry as having some way to go towards incorporating them on factory floors ...

User comments : 0

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.