After a couple of weeks locked in a bidding war with HP, tinman Michael Dell has given up on his cunning plan to buy 3Par.
Dell said it will not top HPs latest $33-a-share offer for the company. On the plus side Dell said it is entitled to receive a $72 million break-up fee after 3Par terminated a previous merger agreement. Dell senior VP for corporate strategy Dave Johnson said in a statement that his outfit had taken a measured approach throughout the process and have decided to end the discussions.
The board of 3Par thought that HP's offer was far superior. You do not have to be a financial genius to see why. It's 83 per cent above Dell's first offer and more than three times what 3Par stock was trading when the bidding war began.
HP and Dell wanted 3Par as a way to build up their data centre and "cloud computing" businesses.