Barbarians at the 3Par Gate as HP Increases Bid
CNBC Anchor and Reporter
Hewlett Packard raised its bid for 3Parto $27.00 a share, valued at $1.8 billion on Thursday.
The proposal represents an 11 percent premium above the most recent price offered by Dell of $24.30 per share.
This is a contested situation where you want to maintain being the superior bid, if you will.
Both HP and Dell are clearly saying that 3PAR is a strategic asset for the company.
The battle for 3Par is driven by its cloud-based storage applications, which enable IT organizations to deliver software and hardware as a service, offering a storage infrastructure platform for highly-virtualized data centers and cloud computing.
This newest bid by Dell, earlier today, reflects an amended termination fee or break up fee of $72 million, which is payable in the event that 3Par receives and accepts another unsolicited acquisition proposal that its board determines to be superior to Dell's increased offer.
How, if at all, does the uncertainty in the HP executive suite play into this? The company doesn't have a permanent CEO since Mark Hurd's scandal.
So far it doesn't appear to affect their decision making. In fact, they've got an executive in charge of this particular area of bidding. (More about Hurd's departure and severance pay here)
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