Dell drops out of 3PAR bidding war

Hewlett-Packard looks set to complete the acquisition of virtualised storage provider 3PAR after bidding rival Dell declined to match its latest offer of $2.4 billion.

The figure is more than twice the initial $1.15 billion takeover bid Dell made on 16 August. At the time that offer represented an 87% premium over 3PAR's total market value.

HP trumped Dell's initial bid, and the company's submitted competing offers until Dell's acquiesence today. HP's winning bid represents a 160% premium over 3PAR's market capitalisation before the bidding war began.

“We took a measured approach throughout the process and have decided to end these discussions," said Dave Johnson, Dell's senior vice president of corporate strategy, in a statement released today.

3PAR's storage managment technology is designed for use with virtualised IT environments, and is predicted to be a valuable asset as organisations seek to wring greater efficiencies from the IT infrastructure through continued virtualisation.

Peter Done

Peter Done is managing director of Peninsula Business Services, the personnel and employment law consultancy he set up having already built a successful betting shop business.

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Mergers and Acquisitions