Dell hands 3Par to HP?as walks out of bidding war

 
City A.M. Reporter
DELL said yesterday it won’t match HP’s offer to pay $33 per share for 3Par, or about $2.07bn (£1.3bn) yesterday. Dell’s decision came barely an hour after 3Par announced it had received Dell’s revised offer of $32 per share and then the even stronger bid from HP.

3Par said Dell’s revised offer contained new terms that it found unacceptable, including a multiyear reseller agreement with Dell that would remain in effect even if 3Par were to be bought by another company. The board of 3Par approved HP’s offer, which is 83 per cent above Dell’s first offer and more than three times what 3Par stock was trading at then. The deal is expected to close by the end of the year.

“We took a measured approach throughout the process and have decided to end these discussions," said Dave Johnson, Dell’s senior vice president for corporate strategy.

Shares of 3Par increased 80 cents, or 2.5 per cent, to close yesterday at $32.88. Before Dell conceded, 3Par shares were trading as high as $33.84 as investors expected Dell to match or beat HP’s $33-per-share offer.