3Par Buyout: Dell/HP Bidding War
3Par Buyout: Dell/HP Bidding War – 3Par was involved in a bidding war for acquisition between HP and Dell. HP raised its offer to $30 per share, which was $3 more than the previous Dell bid, which has brought the total to $2 billion.
Dell’s original offer of $1 billion was rejected, and the company attempted to entice HP to enter the race.
Dell has yet to respond to the bid, and they are deciding whether or not the competition has become too rich for their blood.Both companies have seen their business falter in recent months, and a rumored cloud computing trend could save both companies with the right acquisition.
Cloud computing will offer a number of advantages for small businesses. First of all, it will greatly reduce the upfront costs of running the business on a day to day, and would allow someone else to be responsible for the backing up of data. Many constantly struggle to keep costs down, and cloud computing would be a way to help small businesses do so. The business would also not be required to build huge data-storage centers.
If Dell does decide to match their bid, it appears that HP is willing to take the stakes even higher. Their $3 increase over Dell’s last bid showed that they were serious about the acquisition. It is not currently clear who will end up owning the company, but it is clear that both companies are eager to delve deeper into cloud computing. The losing company will likely be forced to acquire an additional, lesser company in order to make up for their missed opportunity.