HP Outbids Dell for 3PAR

Rich Tehrani : Communications and Technology Blog - Tehrani.com
Rich Tehrani
CEO
| Communications and Technology Blog - Latest news in IP communications, telecom, VoIP, call center & CRM space

HP Outbids Dell for 3PAR

A commentator on CNBC said this morning that Dell just can't catch a break - this was in reference to the fact that HP just jumped into the 3PAR bidding ring with an offer one-third greater than Dell's. According to the Wall Street Journal:

H-P is offering $24 a share for 3PAR, compared with Dell's deal for $18, or about $1.15 billion in cash. Before that agreement was made public, 3PAR last traded at $9.65.

3PAR as you may know by now is a company in the high-end virtualized storage space and as the amount of corporate data needing storage continues to grow at massive rates, both Dell and HP see this area as one ripe for consolidation.

Back to Dell, the company at one point said it wouldn't even engage in acquisitions and a few years back has done an about face which has now put it smack in the middle of a potential bidding war.

For Dell, the moves it makes as a result of HP's offer will likely define how aggressive it will be in upcoming mergers this decade. For HP, this deal has incredible timing as investors still have frayed nerves over the ouster of Mark Hurd and the unusual circumstances detailed in bizarre media frenzy.

As you recall however, the company said more or less that Hurd was expendable as he was shown the door and this deal could be the proof that this is the case. Oh and as a side benefit, we can expect the media and investors to once again focus on HP as a growing tech play and not one with frequent management challenges.



Related Articles to 'HP Outbids Dell for 3PAR'
d-link-dgs-8000-right.jpg
nfvzone.png
old-microsoft-logo.jpg

Featured Events