Tags: US | Dell | Hewlett | Packard | 3Par

HP Raises Offer for 3Par to $1.69 Billion, Trumping Dell

Thursday, 26 Aug 2010 04:30 PM

Hewlett-Packard Co. said Thursday it is raising its offer for data-storage maker 3Par Inc. to about $1.69 billion, topping a bid from rival Dell Inc. just hours after it was made public.

HP's new offer is for $27 per share in cash. Earlier, Dell said 3Par had accepted its second offer of $24.30 per share in cash, or $1.52 billion.

Dell made its first offer, $18 per share, for 3Par on Aug. 16. HP kicked off the bidding contest with its counteroffer Monday.

HP and Dell, among the world's largest personal computer makers, see 3Par as a way to build up their "cloud computing" businesses, delivering software, data storage and other services to customers over the Internet. The companies want 3Par to help keep data storage costs down because the company has technology that doles out storage space on the fly.

Dell's agreement with 3Par gives Dell time to match competing offers such as the latest from HP.

In extended trading, share of HP, which is based in Palo Alto, Calif., slipped 18 cents to $38.04, as investors reacted to the company's decision to pursue a deal at more than double 3Par's share price before Dell's initial bid. Earlier, HP's stock dipped 2 cents to close at $38.22 Thursday.

Shares of Dell, which is based in Round Rock, Texas, dropped 4 cents to $11.71 in extended trading after falling 3 cents earlier to close at $11.75.

3Par, based in Fremont, Calif., saw its stock bounce up $1.79, nearly 7 percent, to $27.82, which is above HP's latest offer price. Its shares ended regular trading down 73 cents, or 2.7 percent, at $26.03.

© Copyright 2017 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

1Like our page
2Share
Companies
Hewlett-Packard Co. said Thursday it is raising its offer for data-storage maker 3Par Inc. to about $1.69 billion, topping a bid from rival Dell Inc. just hours after it was made public. HP's new offer is for $27 per share in cash. Earlier, Dell said 3Par had accepted its...
US,Dell,Hewlett,Packard,3Par
272
2010-30-26
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved