Dell Contemplates Over Purchase Price of 3Par

Dell
Many computer giants, including Hewlett-Packard and Dell, are keeping an eye on the acquisition of 3Par, a data-storage Company. HP has already offered a bid for 3Par for $2 billion and yesterday Dell announced that it is still pondering over the price of the bid, whether it should be similar to HP’s or not.

The 3Par’s technology would be an added advantage for the Company, which would be its ultimate possessor that would enable its services to be served to PCs, mobile devices and smart sensors through the Internet cloud.

At first, Dell offered the purchase price of $1.15 billion, or $18 a share, for 3Par. HP, on Friday made the bid offer worth $2 billion i.e. $30-a-share, which valued 3 Par’s share of $10-a-share at 200% premium.

On Monday, the Reuters surveyed eight technology investors and analysts, which expected that Dell may step back from the bidding process of 3Par for the price reason that has been offered by HP.

Peter Bell at venture capital firm Highland Capital Partners said, "Clearly both Companies really want 3PAR as part of their product mix, but I think it's hard to compete with HP. They've got the bigger balance sheet".

The analysts are of the view that HP has more scope of winning 3Par, as it yields yearly revenue of $115 billion against Dell’s revenue of $53 billion.