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HP's offer represents 33% premium offer Dell's offer

Acquisitions and mergers appear to be accelerating at a furious pace these days in the tech sector. During the close of 2009 and during the opening months of 2010, Apple and Google were jockeying for position in the mobile advertising arena with high-profile acquisitions. Just last week, Intel threw everyone for a loop with its purchase of McAfee for $7.68 billion USD.

Now, we are witnessing Hewlett-Packard and Dell in a bidding war over 3PAR, a Fremont, California-based company that specializes in storage hardware solutions and accompanying storage management software. The company reported revenue of $194 million in fiscal year 2010. The company's net loss for FY 2010 was 3.2 million.

Dell presented a tender offer of $18 a share for 3PAR in a transaction valued at $1.15 billion (this represented an 87 percent premium on 3PAR's stock price at the time). However, HP has countered with a 33.3 percent premium at $24 a share which pushes the transaction price to $1.6 billion.

HP’s proposal offers superior value to 3PAR’s shareholders. Our global reach, strong routes to market and commitment to innovation uniquely position HP as the ideal fit for 3PAR,” said Dave Donatelli, executive vice president and general manager, Enterprise Servers, Storage and Networking, HP. “We’ve seen great momentum with our Converged Infrastructure strategy, and 3PAR accelerates that strategy, particularly in cloud and scale-out markets.”

While HP's offer is incredibly generous, Reuters reports that HP's current lack of a permanent CEO -- thanks to former CEO Mark Hurd's hasty departure -- may make the decision a bit more murky for 3PAR. However, Donatelli was quick to swat down that speculation, commenting, "I have absolutely no concerns as it relates to this deal."

"HP is uniquely positioned to capitalize on 3PAR’s next-generation storage technology by utilizing our global reach and superior routes to market to deliver 3PAR’s products to customers around the world," said Shane Robison, HP's Executive Vice President and Chief Strategy and Technology Officer in a letter to the 3PAR board. "Together, we will accelerate our ability to offer unmatched levels of performance, efficiency and scalability to customers deploying cloud or scale-out environments, helping drive new growth for both companies."





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