Dell Has Three Days to Top HP’s 3Par Bid
Dell’s been given a deadline to top Hewlett-Packard’s $1.6 billion offer for 3Par, the storage vendor it announced plans to acquire last week. In a Monday filing with the Securities and Exchange Commission, 3Par said it’s holding talks with HP to determine whether its unsolicited buyout proposal is superior to Dell’s, adding that it’s “reasonably likely” that it is.
If that’s the final determination, Dell (DELL) will have three days to sweeten its offer, or 3Par (PAR) will begin merger negotiations with Hewlett-Packard (HPQ).
In its filing, 3Par stresses that its board of directors has not yet made any determinations with respect to HP’s acquisition proposal and continues to unanimously recommend that its stockholders accept Dell’s offer, but its mandate to the company is clear: Raise the stakes or cede the battle.
Dell hasn’t yet commented on the filing, but it’s said to be drawing up a better offer for 3Par, though some question whether it is capable of mounting a new bid large enough to knock HP out of the running.
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