Thursday, September 2, 2010

Dell Lets H-P Win In 3Par Fight, Oil Rig Explodes

Hewlett-Packard is buying the data storage outfit. An oil rig explosion in the Gulf of Mexico sends Drillers lower. 

Dell threw in the towel on a two-week battle with Hewlett-Packard for ownership of data storage Firm 3Par. 

Dell (DELL - news - people) announced Thursday it will Not That Increase ITS Most Recent proposal of $ 32 per share Thurs Acquire 3Par (PAR - news - people), And that Dell has ended discussions ITS Regarding a Potential acquisition. Dell says it is Leveraging Thurs Receive a $ 72 million break-up fee from 3Par upon the termination, investigation of its Merger Agreement. 

"We got a measured Approach Throughout the process and not have decided to end These discussions," said Dave Johnson, senior vice president, Corporate Strategy. 

The announcement Came on a Hewlett-Packard (HPQ - news - people) if they give ITS offer to $ 33 per share, Just Shy of $ 2.1 Billion. (See "3Par Battle: Bids Raised, Dell Bows Out.") Its failure to win the bidding war is awkward for Dell as it put forth a strong argument for why it wanted the company in the first place. (See "What Will Dell Do?") 

Brain Gladden, Dell's Chief Financial Officer, info "link on the company" will continue Thurs put the Interests of our customers and shareholders at the Forefront of all our Decisions. " 

INSTEAD of Being upset though, investors appeared pleased with the news, as shares of Dell Increased 2.3%, or 28 cents, to $ 12.40 in midday trading, while Hewlett-Packard ticked up 0.5%, or 21 cents, to $ 39.42. Shares of 3Par meanwhile settled at $ 32.84, Representing an Increase of 2.4%, or 76 cents, from Wednesday's closing price. Prior Thurs Dell's initial offer 3Par Traded at $ 9.65.

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