SAN FRANCISCO, Aug. 26 (Xinhua) -- Hewlett-Packard Co. (HP) on Thursday raised its offer to buy 3PAR Inc., trumping an offer made earlier in the day by Dell Inc. and escalating a bidding war between the two rivals.
HP's latest proposal to acquire all of the outstanding shares of 3PAR at 27 U.S. dollars per share, which values the data storage company at 1.8 billion dollars, represented an 11-percent premium over the sweetened offer of 24.3 dollars per share announced by Dell earlier on Thursday.
Dell had previously signed an agreement to acquire 3PAR for 18 dollars per share, but HP then countered with a higher offer of 24 dollars per share.
"Our revised proposal offers superior value to 3PAR's shareholders, while maintaining our disciplined approach to only pursuing acquisitions that we believe will strengthen our portfolio and create long-term value for our shareholders," Dave Donatelli, an HP executive vice president, said in a statement.
"Not only is our offer superior to Dell's proposal, HP remains uniquely positioned to execute on this combination given the number of synergies between the two companies," Donatelli added.
So far there are no responses from Dell on HP's new bid.
The bidding war between HP and Dell came as the two personal computer giants are striving to diversify their business and push into enterprise data center as well as other more profitable markets.
3PAR is a provider of highly-virtualized storage solutions called "utility storage," designed to be the storage foundation for utility computing that enables information technology organizations to deliver software and hardware as a service through server and storage virtualization.
Founded in 1999, 3PAR is now headquartered in Fremont in the U. S. state of California.