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HP's back on top for 3PAR; will Dell withdraw?

Hewlett-Packard didn’t wait long to counter Dell’s counter offer to buy 3PAR. HP made a new bid of $27 per share after the market closed today, an 11% improvement on Dell’s pre-market offer of $24.30 per share or just over $1.6 billion.

Dell started the bidding with a $1.15 billion offer Aug. 16, and HP offered $1.6 billion Monday.

3PAR accepted Dell’s offer this morning, but hasn’t responded to HP’s bid. Dell’s revised agreement today increased the termination fee to $72 million that 3PAR must pay Dell if it accepts another offer. The previous termination fee was $53.5 million. Like its first offer, HP’s new bid did not include a termination fee.

At least one financial analyst who follows the storage industry predicted HP’s latest bid will be the winner.

“We believe it is now less likely that Dell will return with a competitive bid for 3PAR and would reiterate our prior stance that we have believed that HP would ultimately win this bidding war,” Aaron Rakers of Stifel Nicolaus Equity Research wrote in a note issued after HP’s second offer.

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