America's two largest computer manufacturers lock horns as they seek to profit from expected growth in online IT services
Texas-based computer maker Dell has struck back at its larger US rival, Hewlett-Packard, in their struggle to buy data storage firm 3Par by slapping down an improved offer of $1.52bn as the two hardware manufacturers jostle for position in the potentially lucrative market for so-called "cloud computing".
America's two largest computer manufacturers are going head-to-head in a rare outright confrontation to take over 3Par, a hitherto obscure business which is considered well placed to benefit from higher information technology spending when the corporate world eventually stages a recovery from the recession.
Dell's bid of $24.30 a share is a sharp rise from its earlier $18 offer, which was made a week ago. It is pitched just above a competing proposal from HP of $24 per share, worth $1.5bn (£965,000), and was swiftly accepted by 3Par's board, although analysts caution that the auction may not yet be over.
Both Dell and HP are anxious to get their hands on 3Par's expertise in data storage for businesses. Based near San Francisco, 3Par has 670 staff and could cash in from a trend where organisations shift away from spending money on their own server hardware to having technology resources delivered over the internet by third-party suppliers according to need – known as "cloud computing".
Toan Tran, a technology analyst at research firm Morningstar, said HP was likely to strike back, while other buyers, including the electronic data storage group EMC, could yet wade into the fray.
"3Par is currently trading at a premium to HP's offer, which reflects the market's belief that Dell or another acquirer may come in with yet a higher bid," said Tran. "At the end of the day, 3Par is worth more to HP than it is to Dell, given HP's existing enterprise hardware and services business."
HP splashed out $13.9bn two years ago on Electronic Data Systems, bolstering its presence in business IT services. But it is hobbled by a lack of a permanent chief executive: its boss, Mark Hurd, was forced out earlier this month in a scandal over allegations of sexual harassment and improper expense claims.
