Hewlett Packard raised it's bid for 3Par to $30.00 a share, or about $2 billion on Friday. This comes after Dell matched HP's previously increased bid to $27.00 a share, valued at $1.8 billion earlier this morning.
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.
Hewlett Packard, whose $115 billion in annual revenue compared with Dell's $53 billion, has the firepower to increase its bid further but must also keep an eye on the richer valuation of the data storage company.
JPMorgan Chase is HP’s investment bank on the deal, and Cleary Gottlieb Steen & Hamilton is its legal adviser.
Dell still has a 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.