The battle lines have been drawn in Silicon Valley.
Hewlett-Packard Co., the world’s leading computer maker, has bid $1.6 billion in cash to acquire online storage company 3Par Inc., trumping rival Dell Inc.’s $1.2 billion offer last week.
HP’s offer of $24 per share is 33 percent higher than Dell’s bid, which some analysts last week viewed as already too high a price. But apparently both companies highly value the future demand for online storage.
The computer giants are jockeying for position to challenge market leader International Business Machines Corp. for enterprise server and storage equipment. 3Par provides so-called “cloud computing” services, which host applications, and storage on remote servers for clients. In recent years firms such as Microsoft Corp. and Google Inc. have invested heavily in the technology.
“HP’s proposal offers superior value to 3Par’s shareholders. Our global reach, strong routes to market, and commitment to innovation uniquely position HP as the ideal fit for 3Par,” said Dave Donatelli, executive vice president of HP’s Enterprise Servers, Storage and Networking, in a statement.
In 2007, Dell purchased data storage company EqualLogic Inc. for around $1.4 billion, and it was looking for more acquisition targets to expand its business. HP this year expanded into the networking equipment sphere—challenging Cisco Systems Inc.—by paying $2.7 billion for 3Com Corp.
HP has suffered its share of controversy this year. Earlier this month its longtime CEO Mark Hurd resigned over allegations of falsifying expense reports and failing to disclose a personal relationship with a contractor.
It is unclear whether Dell is preparing a competing offer. 3Par’s shareholders would have to approve any proposed deal.
Hewlett-Packard Co., the world’s leading computer maker, has bid $1.6 billion in cash to acquire online storage company 3Par Inc., trumping rival Dell Inc.’s $1.2 billion offer last week.
HP’s offer of $24 per share is 33 percent higher than Dell’s bid, which some analysts last week viewed as already too high a price. But apparently both companies highly value the future demand for online storage.
The computer giants are jockeying for position to challenge market leader International Business Machines Corp. for enterprise server and storage equipment. 3Par provides so-called “cloud computing” services, which host applications, and storage on remote servers for clients. In recent years firms such as Microsoft Corp. and Google Inc. have invested heavily in the technology.
“HP’s proposal offers superior value to 3Par’s shareholders. Our global reach, strong routes to market, and commitment to innovation uniquely position HP as the ideal fit for 3Par,” said Dave Donatelli, executive vice president of HP’s Enterprise Servers, Storage and Networking, in a statement.
In 2007, Dell purchased data storage company EqualLogic Inc. for around $1.4 billion, and it was looking for more acquisition targets to expand its business. HP this year expanded into the networking equipment sphere—challenging Cisco Systems Inc.—by paying $2.7 billion for 3Com Corp.
HP has suffered its share of controversy this year. Earlier this month its longtime CEO Mark Hurd resigned over allegations of falsifying expense reports and failing to disclose a personal relationship with a contractor.
It is unclear whether Dell is preparing a competing offer. 3Par’s shareholders would have to approve any proposed deal.
Friends Read Free