Welcome!

Artificial Intelligence Authors: Pat Romanski, Yeshim Deniz, Elizabeth White, William Schmarzo, Liz McMillan

Related Topics: @CloudExpo, Containers Expo Blog, Recurring Revenue, Artificial Intelligence, Log Management

@CloudExpo: Article

Dell Tops HP’s 3PAR Bid; HP Trumps Dell Again; Over to You, MD

The tug of war over 3PAR has picked up its pace

The tug of war over 3PAR has picked up its pace.

Thursday morning Dell upped its offer for the virtualized storage house to $24.30 a share, a scant 30 cents better than HP's surprise offer of $24 on Monday, but still roughly $1.53 billion, up significantly from the $1.15 billion that 3PAR accepted from Dell last week.

Thursday afternoon HP went to $27 a share, say $1.8 billion, 11% more than Dell.

Dell now has to decide whether to raise again. It's got perpetual matching rights.

Dell said Thursday morning that 3PAR had accepted its amended offer and that if the obscure little company walks away this time it's going to cost its suitor $72 million, up from the $53.5 million termination fee in their original agreement.

HP and Dell are chasing the unprofitable $200 million-a-year 3PAR for its cloud potential.

Wall Street expected HP to counter because at $26 and change at Thursday's close 3PAR's stock price remained above Dell's $24.30 offer. It has now hovering close to $28 in after-hours trading. The Street frothily speculated this week that the bidding could go to $29 a share according to a Reuters survey.

The guy in charge of HP's servers and storage, David Donatelli, said in a statement,"Our revised proposal offers superior value to 3PAR's shareholders, while maintaining our disciplined approach to only pursuing acquisitions that we believe will strengthen our portfolio and create long-term value for our shareholders. 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."

According to the story 3PAR told the SEC the other day HP, thinly disguised in the narrative as the unidentified "Company B," was actually the first company to make an acquisition offer. 3PAR didn't say what HP was willing to pay back on July 23 only that it was less than the $18 a share Dell eventually put on the table. The rejected HP was given an opportunity to improve on Dell's number but walked away on August 1. That was just about the time that the Mark Hurd crisis was coming to a head in HP's executive suite. Hurd was out August 6.

3PAR says Dell originally tried to hold its costs down to $15-$17 a share cash and wouldn't go to the $18.25 3PAR asked for on July 31 to negotiate exclusively.

See its SEC filing here. The chatty stuff starts on page 19. A Company A and a Company C also make brief appearances. One of them is generally believed to be Oracle. The Wall Street Journal thinks the other one was NetApp. The Register for some reason thinks it was Cisco.

More Stories By Maureen O'Gara

Maureen O'Gara the most read technology reporter for the past 20 years, is the Cloud Computing and Virtualization News Desk editor of SYS-CON Media. She is the publisher of famous "Billygrams" and the editor-in-chief of "Client/Server News" for more than a decade. One of the most respected technology reporters in the business, Maureen can be reached by email at maureen(at)sys-con.com or paperboy(at)g2news.com, and by phone at 516 759-7025. Twitter: @MaureenOGara

Comments (0)

Share your thoughts on this story.

Add your comment
You must be signed in to add a comment. Sign-in | Register

In accordance with our Comment Policy, we encourage comments that are on topic, relevant and to-the-point. We will remove comments that include profanity, personal attacks, racial slurs, threats of violence, or other inappropriate material that violates our Terms and Conditions, and will block users who make repeated violations. We ask all readers to expect diversity of opinion and to treat one another with dignity and respect.


IoT & Smart Cities Stories
Poor data quality and analytics drive down business value. In fact, Gartner estimated that the average financial impact of poor data quality on organizations is $9.7 million per year. But bad data is much more than a cost center. By eroding trust in information, analytics and the business decisions based on these, it is a serious impediment to digital transformation.
In his keynote at 19th Cloud Expo, Sheng Liang, co-founder and CEO of Rancher Labs, discussed the technological advances and new business opportunities created by the rapid adoption of containers. With the success of Amazon Web Services (AWS) and various open source technologies used to build private clouds, cloud computing has become an essential component of IT strategy. However, users continue to face challenges in implementing clouds, as older technologies evolve and newer ones like Docker c...
Digital Transformation: Preparing Cloud & IoT Security for the Age of Artificial Intelligence. As automation and artificial intelligence (AI) power solution development and delivery, many businesses need to build backend cloud capabilities. Well-poised organizations, marketing smart devices with AI and BlockChain capabilities prepare to refine compliance and regulatory capabilities in 2018. Volumes of health, financial, technical and privacy data, along with tightening compliance requirements by...
Bill Schmarzo, Tech Chair of "Big Data | Analytics" of upcoming CloudEXPO | DXWorldEXPO New York (November 12-13, 2018, New York City) today announced the outline and schedule of the track. "The track has been designed in experience/degree order," said Schmarzo. "So, that folks who attend the entire track can leave the conference with some of the skills necessary to get their work done when they get back to their offices. It actually ties back to some work that I'm doing at the University of ...
"MobiDev is a Ukraine-based software development company. We do mobile development, and we're specialists in that. But we do full stack software development for entrepreneurs, for emerging companies, and for enterprise ventures," explained Alan Winters, U.S. Head of Business Development at MobiDev, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
Rodrigo Coutinho is part of OutSystems' founders' team and currently the Head of Product Design. He provides a cross-functional role where he supports Product Management in defining the positioning and direction of the Agile Platform, while at the same time promoting model-based development and new techniques to deliver applications in the cloud.
The many IoT deployments around the world are busy integrating smart devices and sensors into their enterprise IT infrastructures. Yet all of this technology – and there are an amazing number of choices – is of no use without the software to gather, communicate, and analyze the new data flows. Without software, there is no IT. In this power panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, Dave McCarthy, Director of Products at Bsquare Corporation; Alan Williamson, Principal ...
Apps and devices shouldn't stop working when there's limited or no network connectivity. Learn how to bring data stored in a cloud database to the edge of the network (and back again) whenever an Internet connection is available. In his session at 17th Cloud Expo, Ben Perlmutter, a Sales Engineer with IBM Cloudant, demonstrated techniques for replicating cloud databases with devices in order to build offline-first mobile or Internet of Things (IoT) apps that can provide a better, faster user e...
The Founder of NostaLab and a member of the Google Health Advisory Board, John is a unique combination of strategic thinker, marketer and entrepreneur. His career was built on the "science of advertising" combining strategy, creativity and marketing for industry-leading results. Combined with his ability to communicate complicated scientific concepts in a way that consumers and scientists alike can appreciate, John is a sought-after speaker for conferences on the forefront of healthcare science,...
Disruption, Innovation, Artificial Intelligence and Machine Learning, Leadership and Management hear these words all day every day... lofty goals but how do we make it real? Add to that, that simply put, people don't like change. But what if we could implement and utilize these enterprise tools in a fast and "Non-Disruptive" way, enabling us to glean insights about our business, identify and reduce exposure, risk and liability, and secure business continuity?