Dell Flees Bidding War; HP Wins 3Par for $2.4 billion
And just like that the bidding war for 3Par is over. Moments ago, Dell said it would not raise its offer for the data storage provider in response to Hewlett-Packard’s latest $33-per-share bid. “We took a measured approach throughout the process and have decided to end these discussions,” Dave Johnson, Dell’s Senior Vice President of corporate strategy, said in a statement (embedded in full, below).
And so, after a weeks-long pitched battle, HP (HPQ) has won 3Par (PAR). Final price: $2.4 billion.
Earlier this morning, Dell (DELL) raised its bid for 3Par to $32 per share, only to have it trumped hours later by a $2.4 billion, $33-per-share counteroffer from HP. 3Par declared that bid superior and Dell allowed it to stand, withdrawing from negotiations and making arrangements to collect its $72 million breakup fee.
PREVIOUSLY
- Hewlett-Packard Raises 3Par Bid — Again
- Will Dell Bail on 3Par?
- HP’s New Bid For 3Par: $30 per Share. 3Par’s New Share Price: $31.44.
- HP Raises 3Par Bid to $27 Per Share
- After Harried Sofa-Cushion Search, Dell Outbids HP for 3Par
- Dell Has Three Days to Top HP’s 3Par Bid
- Dell Prepping Higher Bid for 3Par
- HP, Dell in Bidding War for 3Par
- Dell Buys 3Par for $1.15 Billion
Dell Declines to Revise Bid for 3PAR, Ends Acquisition Discussions
ROUND ROCK, Texas, Sep 02, 2010 — Dell announced today that it will not increase its most recent proposal to acquire 3PAR, and that Dell has ended its discussions regarding a potential acquisition. Dell is entitled to receive a $72 million break-up fee from 3PAR upon the termination of its merger agreement.
Dell’s final offer to acquire 3PAR was not accepted by 3PAR’s board of directors. Dell’s improved offer included a proposed commercial relationship and an increased break-up fee.
“We took a measured approach throughout the process and have decided to end these discussions,” said Dave Johnson, senior vice president, corporate strategy.
“We will continue to put the interests of our customers and shareholders at the forefront of all our decisions,” said Brian Gladden, chief financial officer. “Our focus is to create long-term value.”
Dell is focused on creating open, affordable and capable enterprise solutions designed to help customers. The company has an industry-leading portfolio of enterprise solutions, including servers, storage, networking and services. Dell’s commercial enterprise solutions revenue grew 43 percent year over year in the company’s second fiscal quarter and is now a $17 billion annualized business.
“We believe our strategy of creating open, affordable and capable solutions resonates well with customers and will enable us to continue to outgrow the industry,” said Mr. Johnson.
