29 Aug 2010

Dell HP in bidding war over data storage company

9:07 am on 29 August 2010

Dell and HewlettPackard have raised their offers again in a bidding war for data storage firm 3Par.

Dell has agreed to match an increased $US1.8 billion total bid, or $US27 per share, made by HP on Thursday.

But HP again raised the stakes, saying it was now willing to pay $US2 billion in cash, or $US30 per share.

Dell already has an agreement with 3Par that makes it the preferred bidder, so long as it matches any rival bids.

Before HP made its latest bid known, 3Par confirmed that as things stood, its board would recommend Dell to shareholders.

3Par's share price jumped nearly 10% in early New York trading on the latest news, to over $31.

The BBC reports the company's price has more than tripled in the last two weeks.

Dell originally agreed to pay $US18 per share before the bidding war began.

3Par says its storage systems can cut storage administration costs by up to 90% and infrastructure costs by up to 75%.

It is unclear whether HP will again raise its own bid.