Feeds

HP tops Dell's offer for 3PAR

Poker pot reaches $1.8bn

Choosing a cloud hosting partner with confidence

HP upped the ante in its battle with Dell last night- outbidding the direct seller's $24 a share offer for 3PAR with an offer of $27 a share - valuing 3PAR at $1.8bn.

This is the fourth bid on the table as Dell and HP slug it out to gain control of 3PAR, the maker of highly-automated, virtualised and very efficient enterprise storage arrays. Dell does not have such a product class in its line-up and needs it to improve its ability to sell entire systems to big businesses and cloud computing service providers.

HP has an OEM'd array from Hitachi, the USP-V, rebranded as the XP, for enterprise use. The boss of its Enterprise Servers, Storage and Networking division, David Donatelli, says that this deal will continue with 3PAR's InServ products enabling HP to sell better to cloud service providers and some enterprise customers.

He claimed: "Not only is our offer superior to Dell's proposal, HP remains uniquely positioned to execute on this combination given the number of synergies between the two companies."

Stifel Nicolaus analyst Aaron Rakers said he sees "a bifurcation going on in the high-end enterprise storage market between (1) traditional proprietary transactional-based storage architectures and (2) standards-based cloud optimised architectures".

Dell made an agreed bid for 3PAR on August 16th, worth $18/share, valuing the company at $1.15bn. Ten days later, after bid and counter bid, that value has shot up to $1.8bn, a $650m jump in value.

Both Dell and HP have a strong desire for 3PAR and, with this significant raise, HP is signalling that it's prepared to stay the course in its contest with Dell. Some observers think that a $2bn bid is now feasible

However, Rakers said: "It is now less likely that Dell will return with a competitive bid for 3PAR."

Dell spokesperson Jess Blackburn was reported as saying: "Well take some time, assess the situation and act in the best interests of our customers and shareholders."

3PAR's hiring of Frank Quattrone's Qatalyst Partners as its financial advisor has certainly worked, raising its worth and delivering cash value to shareholders and those 3PAR executives holding shares and stock options. ®

Internet Security Threat Report 2014

More from The Register

next story
729 teraflops, 71,000-core Super cost just US$5,500 to build
Cloud doubters, this isn't going to be your best day
Azure TITSUP caused by INFINITE LOOP
Fat fingered geo-block kept Aussies in the dark
Want to STUFF Facebook with blatant ADVERTISING? Fine! But you must PAY
Pony up or push off, Zuck tells social marketeers
Oi, Europe! Tell US feds to GTFO of our servers, say Microsoft and pals
By writing a really angry letter about how it's harming our cloud business, ta
SAVE ME, NASA system builder, from my DEAD WORKSTATION
Anal-retentive hardware nerd in paws-on workstation crisis
Astro-boffins start opening universe simulation data
Got a supercomputer? Want to simulate a universe? Here you go
Microsoft adds video offering to Office 365. Oh NOES, you'll need Adobe Flash
Lovely presentations... but not on your Flash-hating mobe
prev story

Whitepapers

Choosing cloud Backup services
Demystify how you can address your data protection needs in your small- to medium-sized business and select the best online backup service to meet your needs.
Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
The hidden costs of self-signed SSL certificates
Exploring the true TCO for self-signed SSL certificates, including a side-by-side comparison of a self-signed architecture versus working with a third-party SSL vendor.
New hybrid storage solutions
Tackling data challenges through emerging hybrid storage solutions that enable optimum database performance whilst managing costs and increasingly large data stores.