Dell bids again, but HP bids higher for 3PAR

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Despite a quick response by Dell, HP has again outbid its rival in the acquisition battle to secure 3PAR.

Late yesterday, HP upped its offer for the virtualisation storage company to $1.8 billion and many were unsure if Dell had the cash reserves to respond.

However, this afternoon Dell waded back in to the fray with a bid of $27 per share to equal HP.

The company didn’t stay on top of the pile for long though, as HP has now come back with a staggering $2 billion offer for 3PAR, a firm which hasn’t made a profit since becoming a public company back in 2007.

“The proposal represents an 11 per cent premium above the most recent price offered by Dell of $27 per share,” read a statement from HP.

“HP’s proposal is not subject to any financing contingency and has been approved by HP’s board of directors. Once approved by 3PAR’s board, HP expects the transaction to close by the end of the calendar year.”

The battle for 3PAR began on 16 August when Dell offered, what now comes across as a modest bid, $1.15 billion. The bidding war has now hit three offers by each company and echoes a similar fight over Data Domain last year between EMC and NetApp, where EMC eventually came out on top.

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