Dell to challenge HP with an improved bid for 3PAR

 
Steve Dinneen
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DELL is planning to submit a more competitive bid for data storage firm 3PAR, challenging Hewlett-Packard’s offer of $24 per share, a source familiar with the talks said yesterday.

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.