August 26th, 2010
04:19 PM ET

HP raises bid, topping Dell offer for 3PAR

[Updated at 4:19 p.m.] HP raises bid for data storage company 3PAR to $27 a share, topping Dell's earlier offer of $24.30 a share.

[Posted at 9:21 a.m.] Storage company 3PAR said Thursday it has accepted Dell's revised offer of $1.6 billion to buy the company after Hewlett-Packard outbid Dell's initial offer.

Dell's new offer of $24.30 per share is 30 cents a share higher than HP's bid and $6.30 a share higher than its first offer of $18 per share, or $1.15 billion. The latest bid represents a 152% premium over 3PAR's closing price of $9.65 the day before Dell's initial bid.

"Storage is at the forefront of this strategy," said Dave Johnson, Dell's senior vice president of corporate strategy, said in a prepared statement. "With the 3PAR acquisition, Dell with have the broadest set of differentiated storage solutions in the market today."

Both Dell and HP submitted bids for the company last week, but HP raised its bid after Dell's offer was announced publicly. On Wednesday, 3PAR told Dell that Dell had three days to raise its offer, or it would go with HP's deal.

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