HP Bids for 3PAR - TheStreet

HP Bids for 3PAR

HP proposed to buy data storage company 3PAR for $24 a share in cash, or $1.6 billion, which HP said is a superior proposal to Dell's agreement to buy 3PAR for $1.15 billion.
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NEW YORK (TheStreet) -- Hewlett-Packard (HPQ) - Get Report has proposed buying data storage company 3PAR (PAR) - Get Report for $24 a share in cash or $1.6 billion, which HP said is a superior proposal with significant premium to Dell's (DELL) - Get Report agreement to buy 3PAR for $1.15 billion.

Dell's agreement

was announced last week.

The proposed transaction represents a 33.3% premium above the price proposed by Dell. HP said that once its offer is approved by 3PAR's board, HP expects the transaction to close by the end of the calendar year.

HP said the addition of 3PAR's next-generation storage architecture will accelerate HP's converged infrastructure strategy.

HP said it will host a conference call for financial analysts and stockholders today at 9 a.m. EDT to discuss its proposal to acquire 3PAR.

Shares of HP have fallen 1.1% to $39.40 in premarket trading Monday, while 3PAR shares shot up 37.3% to $24.76. Dell's stock is up 1.7% to $12.28.

-- Reported by Andrea Tse in New York

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