A fight erupted Monday over Fremont-based data storage provider 3PAR Inc., the result of Hewlett-Packard Co.’s surprise attempt to buy 3PAR for $1.6 billion in cash.
The bid by the Palo Alto-based computer giant equates to $24 a share. That’s 33 percent higher than last week’s bid of $18 a share by Texas-based Dell Computer Inc. 3PAR’s shares rocketed nearly 45 percent higher Monday, jumping $8.05 to finish at $26.09. That’s a possible hint that investors speculate an even higher bid could emerge — or that both HP and Dell might have to sweeten their original bids.
“3PAR provides a clearly significant competitive advantage for either HP or Dell, whichever company wins the bidding,” said Rob Enderle, a San Jose-based industry analyst.
Both HP and Dell have maneuvered lately to extend their product offerings beyond their traditional business of personal computers into more profitable endeavors.
“HP’s proposal offers superior value to 3PAR’s shareholders. Our global reach, strong routes to market and commitment to innovation uniquely position HP as the ideal fit for 3PAR,” said Dave Donatelli, an executive vice president with HP.
Dell and 3PAR did not provide comment Monday about the fresh bid.
“Half the reason these companies want 3PAR is to have an advantage in getting the technology,” Enderle said. “The other half of the reason is they want to prevent the other guy from having 3PAR.”
Big organizations can use 3PAR’s storage servers and software to pool data storage facilities across multiple departments or lines of business. This enables data management to become more efficient.
“3PAR could become a big player in all this stuff and help these companies take market share,” Enderle said.
During the most recent 12 months that ended in June, 3PAR lost $3.2 million on revenues of $204.1 million. The last few quarterly reports have disclosed a trend of rising sales, although losses have not improved much.
Sitting on a pile of cash, some big tech companies appear to be seeking acquisitions. Last week, Santa Clara-based semiconductor titan Intel Corp. bid $7.7 billion to buy software maker McAfee Corp.
More players could go be the prowl for 3PAR.
In a regulatory filing on Monday, 3PAR said it had been pursued by two other companies. 3PAR rejected the advances of one of the suitors in July, the government filing stated.
HP said Monday that it had previously attempted to buy 3PAR.
“IBM also sells serves in this market. You have the EMC and VMware consortium. Cisco might find this interesting as well,” Enderle said.
Contact George Avalos at 925-977-8477.
