HP counters Dell's 3PAR acquisition bid with 33% higher offer

One week after Dell announced its intention to acquire virtualized storage company 3PAR for $1.15 billion, HP announced it has submitted a counter offer of $1.6 billion to acquire the company.

HP had actually made a private offer to acquire 3PAR previously, but the company passed on it, accepting instead Dell's $1.15 billion share buyout bid. Monday's counteroffer from HP was public.

"We understand that you will first need to communicate this proposal and your Board's determinations to Dell, but we are prepared to execute the merger agreement immediately following your termination of the Dell merger agreement," said a letter to 3PAR from Shane Robiso, HP's Executive Vice President and Chief Strategy and Technology Officer. "We also are prepared to commence a cash tender offer reflecting our higher price. Our tender offer would, of course, be conditioned upon your Board of Directors' approval of a transaction with HP."

Dell's acquisition offer broke down to $18 per share; HP's breaks down to $24 per share, or approximately 33% higher.

The offer would have to be approved by 3PAR's board of directors if it is to go forward. 3PAR has not made an official statement today, but we've contacted the company with questions, and we will follow up with updates.