If you have been following tech M&A last week you would have seen HP and Dell battle for 3Par, with Dell starting the bidding, then HP responding, then Dell then …..
The takeover battle for storage vendor 3PAR has kicked into high gear. On Thursday night HP raised its offer to $27 a share, topping a revised Dell offer of $24.30. This morning Dell then matched the HP offer of $27, or about $1.8 billion. Then, HP again boosted its bid to $30 a share, or $2 billion.
Friday morning Dell said its latest $27 a share bid had been accepted by 3PAR’s board of directors, and reaffirmed its commitment to 3PAR and its technology.
“Dell continues to believe that the acquisition of 3PAR, with its industry-leading storage technology, is important to its customers and will enhance Dell’s position in utility-storage solutions,” the company said in a statement. “Consistent with its previous rationale for the acquisition, Dell also believes that its global brand and broad global reach will dramatically accelerate 3PAR’s revenue growth.”
As HP continues to raise the stakes, can Dell win the game by simply calling each raise in the belief that it has the best hand (at least in the eyes of the 3PAR board)? Or will the battle end with one party winning out with a more decisive raise?
For the moment, HP’s $30 offer has put the ball back in Dell’s court. Will the next move be decisive? Are these companies “pot committed” to the point that neither believes it can afford to lose.?
Lets see what this week brings"!