3PAR: HP Trumps Dell After Dell Trumped HP (HPQ, DELL, PAR)

Hewlett-Packard Co. (NYSE: HPQ) has just announced that it is retaliating against a Dell inc. (NASDAQ: DELL) bid to acquire 3PAR, Inc. (NYSE: PAR).  The new offer is $27.00 per share, above HP’s $24 bid and above Dell’s revised $24.30 bid made earlier.  This new all-cash offer creates an enterprise value of $1.8 billion for 3PAR.

The horse race continues.  If this was such a hot company, why was the stock so quiet before the consolidation?

3PAR shares closed down 2.7% at $26.03 and shares are trading up around $27.50 in the after-hours session.  The bet is on that Dell will raise its bid and then maybe that HP will raise its bid.

Dell was accused of overpaying for 3PAR at its first $18.00 offer for the company.  After HP offered 33% more, suddenly analysts saw the company became more of a strategic.  Now, the process is getting carried away.  In the end, HP has more resources to buy the company.  HP is also dealing without  permanent CEO.

Welcome to the bidding war.

JON C. OGG