Dell really wants to acquire to data storage provider 3Par. So does Hewlett Packard. As a result, what started off as a $1.13 billion bid now sits at $2 billion, and the bidding war still doesn't appear to be over.
It all started when Dell agreed to purchase 3Par for $1.13 billion in mid-August. While the deal appeared imminent, rival HP stepped in just a week later with a $1.5 billion bid of its own. What would follow is a high-dollar game of "outbid your opponent," and for the time being, HP is winning with a $2 billion offer.
"Both companies would benefit from 3Par," said IDC Vice President Benjamin Woo. "HP is due for a full refresh for its mid- to high-end storage portfolio" while "Dell wants to own a product for the top price bands in the $100,000+ range."
How high are HP and Dell willing to go? That remains to be seen, but according to each one's financial reports, HP is sitting on $14.8 billion in gross cash and Dell has $13.1 billion in cash and investments.