HPQ Raises Bid For PAR; DELL Backs Off
The fierce, three-week bidding war for 3Par Inc (NYSE: PAR) seems to have finally come to an end after Hewlett-Packard Co (NYSE: HPQ) sweetened its bid to $33 a share.
Dell Inc (NASDAQ: DELL) opted for a ceasefire by issuing a statement saying that it will not raise its offer for the data storage company. HPQ’s bid values PAR at about $2.4 billion.
DELL’s senior vice president for corporate strategy Dave Johnson said in a statement, “We took a measured approach throughout the process and have decided to end these discussions.” 3Par’s board of directors considers the new offer by HPQ as a "superior proposal."
Dell had previously raised its bid to $32 per share in an offer that was not made public. PAR said that it had notified Dell of its plans to end the initial merger agreement between the two companies within three business days. Dell said it was entitled to a breakup fee of $72 million according to its previous agreement with PAR.
Shares of PAR are up 2.40% at $32.85 at 12:47 pm. Those of HPQ are up 0.48% at $39.40. DELL shares are up 2.72% at $12.45.
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