This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Michael Dell: HP Overpaid for 3Par

Stocks in this article: DELL HPQ

DAVOS, Switzerland ( TheStreet) -- Dell (DELL) CEO Michael Dell believes that rival Hewlett-Packard (HPQ) overpaid when it spent $2.35 billion to acquire 3Par last year.

Speaking in an interview with Bloomberg at the World Economic Forum, Dell explained why his company exited last summer's bidding war with HP over 3Par. ""We showed a good discipline and didn't take an emotional decision," he said. HP paid "way too much" for 3Par, added the CEO, who compared the deal to the $960 million Dell paid for storage firm Compellent (CML) in December.

Michael Dell believes that HP paid too much for storage specialist 3Par.

Dell also confirmed that his company has more M&A up its sleeve. "We are looking at more acquisition opportunities in software, data centers, cloud computing, storage and virtualization," he said.

There has already been speculation that NetApp (NTAP) could make an attractive target for Dell, although, with a market cap of more than $19 billion, the storage maker would not come cheap.

Other storage companies cited as a good fit include publicly traded CommVault (CVLT) and Falconstor (FALC), as well as privately-held DataDirect, BlueArc and Xiotech. Data networking company Brocade (BRCD) has also been cited as a potential target.

Technologies such as virtualization, data center gear and cloud computing are all expected to be big winners in 2011, boosted by healthy enterprise IT spending.

Dell admitted that certain companies' valuations have risen dramatically recently, according to Bloomberg. "There's a fairly striking disconnect between the valuation of established tech companies and the newly-emerging ones," he said. "The market will figure it out."

Dell shares rose 17 cents, or 1.24%, to $13.90 on Wednesday as the Nasdaq gained 0.09%.

HP declined to provide comment for this story.

--Written by James Rogers in New York.

>To follow the writer on Twitter, go to

>To submit a news tip, send an email to:

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs