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Strategies & Market Trends : Speculating in Takeover Targets -- Ignore unavailable to you. Want to Upgrade?

To: richardred who wrote (2337)	8/27/2010 1:35:00 PM
From: richardred	Read Replies (1) \| Respond to of 7279

UPDATE 7-HP raises 3PAR offer to $2 bln, trumps Dell bid * HP raises offer to $30 per share from $27 * Dell had matched HP's previous bid * 3PAR shares jump 24 pct to $32.28 * Analysts say HP stronger bidder, some warn on valuation (Adds comments from Dell and professor, background on execs, updates share prices) By Ritsuko Ando and Soyoung Kim NEW YORK, Aug 27 (Reuters) - Hewlett-Packard Co (HPQ.N) raised its offer for 3PAR Inc (PAR.N) to $2 billion, once again topping Dell Inc's (DELL.O) bid and showing it had plenty of ammunition in a bidding war for the data storage company. HP's offer of $30 per share was the latest in a week-long volley of escalating bids, and came less than 3 hours after Dell announced 3PAR had accepted its bid of $27 per share, which matched HP's previous offer. Analysts say HP may be the stronger bidder with $115 billion in annual revenue compared with Dell's $53 billion, and a more global sales force that could help 3PAR grow faster. HP's bids have also been bolder, while Dell has mostly moved to match its rival. "It's strategically important to both companies. But given the bidding behavior, I feel like HP's in this to win it," said Dinesh Moorjani, analyst at Gleacher & Co. Dell's prior agreement with 3PAR, however, allows it to match competing bids, and the company said it was assessing the latest move, which has raised 3PAR's valuations to what some analysts see as unreasonable levels. "We'll act in the best interest of our customers and our shareholders, and the long-term value creation for both," said Dell spokesman David Frink. 3PAR shares were up 24 percent at $32.28 in early afternoon, indicating investors expect an even higher bid to emerge. The shares had mostly traded at around $10 this year, until Dell announced its $18 per share bid earlier this month. If it wins, HP would also need to pay the breakup fee of $72 million that is part of the Dell-3PAR deal. HP said that once the deal is accepted by 3PAR, it will close by the end of the year. reuters.com