HP's $2 billion bid leads 3PAR to terminate agreement with Dell
Two weeks ago, Dell announced it would be acquiring virtualized storage company 3PAR for $1.5 billion. Dell's announcement, however, represented only a preliminary agreement between the companies, and HP wanted to acquire 3PAR as well.
Friday morning, just a matter of hours after 3PAR announced it had signed the second amendment to its merger agreement with Dell, competitor HP made its third bid for 3PAR, which upped the total value of the company to $2 billion.
In the late night hours Friday, 3PAR announced that its board of directors determined that offer to be superior, and that it would terminate the merger agreement it had with Dell as soon as it can.
3PAR says it has alerted Dell's board of directors of its intent to terminate the agreement in three business days "contemplated by, and the satisfaction of the other conditions set forth in, the merger agreement with Dell in order to enter into the merger agreement with HP on the terms set forth in HP's acquisition proposal."
However, 3PAR's board of directors must continue to recommend that its stockholders accept Dell's cash tender offer, and tender their 3PAR shares pursuant to Dell's tender offer, so long as the merger agreement with Dell remains in effect.