With HP Bid at $2B, Dell Mulls Options on 3PAR
August 29th, 2010 By: Rich Miller
Will HP’s $2 billion, $30 a share bid for storage vendor 3PAR (PAR) be the last word? The ball is in Dell’s court. Here’s a roundup of the latest news and analysis on the Battle for 3PAR:
- Dell says assessing 3PAR offer after HP trumps bid – Dell Inc said on Sunday it was assessing its bid for 3PAR Inc after the data storage company’s board of directors late on Friday said Hewlett-Packard Co’s $2 billion offer was a “superior proposal.” From Reuters.
- Investors in 3Par are big winners – Regardless of who triumphs in the high-stakes battle to acquire Fremont tech company 3Par, the immediate winner in the bidding war between Hewlett-Packard and Dell will be 3Par’s investors, including top executives and three Silicon Valley venture firms that helped the data storage supplier get started 11 years ago. From the San Jose Mercury News
- What the Dell/HP 3Par Buyout Really Means – From PC World: The fight for 3Par is undoubtedly fueled by the fact that Both Dell and HP have seen their “beige box” business falter as personal computing evolves toward handheld devices. At the same time, however, both companies have lead the growth in the server market. As that business migrates toward the promise of cloud computing, it’s not hard to see why the two companies are vying for a seat at the table.
- EMC has stake in battle for 3Par – EMC Corp., which competes with 3Par in the data storage business and is a longtime partner with Dell, will be affected no matter which company ultimately wins the bidding war. From The Boston Globe.
- 3Par Will Be A Bargain For Whoever Gets It – From Mark Gerstein at Forbes: This isn’t really a takeover in the conventional sense. Think of it instead, as a bidding war to recruit some hot new talent for the R&D effort, and pick up some already-commercial product. Remember, the attraction of 3Par is the likelihood it would help either company ramp up in the emerging and potentially huge field of “cloud computing.”
- 3PAR battle is case of undisciplined cash vs. cash – There’s no sound mathematical rationale for the 3PAR frenzy, which has now reached $2 billion with HP’s third counter-offer to Dell. Only a highly creative financier with a spreadsheet and a bong could justify the valuation on HP’s latest bid — the sixth for the company in three weeks. Analysis from Reuters.
For background and analysis of the 3PAR takeover fight, see Analysis: Dell-3PAR Storage Acquisition, It’s HP vs. Dell in Bidding War for 3PAR, Mega-Roundup: The Battle for 3PAR, Dell Counters HP with $1.6B Bid for 3PAR and HP Tops Dell, Raises 3PAR Bid to $2 Billion.
[...] across this link on Data Center Knowledge to Forbes online – In fiscal 2010 (ended January 31st), Dell spent $617 million for R&D, or [...]
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