3PAR said on Tuesday it would start merger talks with HP after HP’s $1.6bn offer topped Dell’s previous, $1.15bn bid.
HP has more cash and cash equivalents than Dell but with $15bn and $11bn, respectively, both could easily afford to buy 3Par.
Dell is following HP’s expansion into services and is increasing its foray into smartphones.
Analysts are expecting a fierce bidding war between the two firms for 3PAR.
Dell and HP?both declined to comment yesterday.