Story Published: Sep 2, 2010 at 7:14 AM PST
Story Updated: Sep 2, 2010 at 7:14 AM PST
Dell said Thursday it won't match HP's offer to pay $33 per share for 3Par, or about $2.07 billion. Dell's decision comes barely an hour after 3Par announced it had received an offer from Dell of $32 per share and then the even stronger bid from HP.
In a statement, 3Par said Dell's revised offer contained new terms that it found unacceptable, including a multiyear reseller agreement with Dell that would remain in effect even if 3Par were to be acquired by another company.
The board of 3Par deemed HP's offer superior.
"We took a measured approach throughout the process and have decided to end these discussions," said Dave Johnson, Dell's senior vice president for corporate strategy.
Shares of 3Par increased 75 cents, or 2.3 percent, to $32.83 in morning trading Thursday. Before Dell conceded, 3Par shares were trading as high as $33.84 as investors expected Dell to match or beat HP's $33-per-share offer.
Dell shares jumped 18 cents, or 1.5 percent, to $12.30, while shares of HP, which is based in Palo Alto, Calif., increased 33 cents, or 0.8 percent, to $39.54.
Dell, which is based in Round Rock, Texas, made the first offer for 3Par on Aug. 16, at $18 per share. As part of an agreement between the two companies, 3Par must pay Dell a $72 million termination fee.
Both PC makers were looking at 3Par as a way to build up their "cloud computing" businesses, delivering software, data storage and other services to customers via the Internet. Fremont, Calif.-based 3Par could also help them cut data-storage expenses.
For either company, the acquisition would come as part of a strategy to grow more profitable lines of business outside the personal computer market.
