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Hewlett-Packard (HPQ) Increases Offer to $1.8 Billion – Outbidding Dell (DELL) Again
August 27, 2010, 11:00 AMHewlett-Packard Co. (NYSE: HPQ)on Friday increased its offer for 3Par Inc. to $1.88 billion, once again outbidding Dell Inc.’s (Nasdaq: DELL) offer by 11 percent.
The new HP offer comes a few hours after 3Par accepted Dell’s matched $1.6 billion offer, HP fired back offering $1.8 billion for the company, or $27 per share in cash.
The bidding war for 3Par began last week when Dell offered to buy the company for $1.15 billion. HP had also made an earlier offer as well, but was rejected.
During early trading on Friday, Shares of 3Par increased $5.43, or 21 percent, to $31.46. Investors are expecting Dell to respond with another counter offer due to 3Par’s Shares being above HP’s current offer price.
Dell spokesman David Frink said that the company has plans to review HP’s new offer and “act in the best interests of our customers, shareholders and long-term value creation.”
Both companies are viewing the storage company 3Par as a way to build up their computing businesses, software, data storage and other services to customers. They are also both trying to expand beyond the PC business due to shrinking profits as many companies are not buying their own servers anymore.
Dell’s Shares were up 21 cents, or 1.8 percent, to 11.96 in morning trading. HP shares decreased 46 cents, or 1.2 percent, to $37.76.
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Tags: 3par inc, Dell Inc., hp, Nasdaq, NYSEToday's Market
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