Getting high

27 August 2010 By Rob Cox Follow @rob1cox

Bidding for the storage firm reached a silly $2 bln with HP s third riposte to Dell. At triple 3PAR s undisturbed value, only a creative financier with a spreadsheet and a bong could justify the figures. Cash is burning holes quickly in the pockets of these wayward tech giants.

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HewlettPackard offered to pay $30 a share, or $2 billion net of cash, to acquire 3PAR, a data storage group that had previously agreed to be acquired by Dell. The offer trumped Dell's matching of HP's raised $27 a share offer of Aug. 26.

The offer was HP's third this week, since it bid $24 a share on Aug. 23, trumping Dell's first offer of $18 reached Aug. 16. If accepted, HP would be paying 3.1 times 3PAR's undisturbed share price of $9.65.

HP is being advised by JPMorgan. 3PAR's auction is being handled by Qatalyst Partners.

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