HP raises 3PAR offer to $2.4bn

HP looks to be in the driving seat for the buyout of 3PAR

HP has raised its bid for 3PAR yet again in a bid to prevent rival Dell from acquiring the storage firm.

3PAR confirmed that it had received an offer of $2.4bn (£1.56bn) from HP, equivalent to $33 (£21.46) per share.

"The 3PAR board of directors has determined that HP's revised proposal constitutes a 'Superior Proposal' as that term is defined in 3PAR's merger agreement with Dell," the firm said in a statement.

"Accordingly, 3PAR notified Dell of its intention to terminate its merger agreement with Dell immediately following the expiration of the three business day period."

3PAR aims to enter into a merger agreement with HP at the end of this period, on the terms set forth in the revised acquisition proposal.

Dell last offered $32 (£20.82) per share under a revised acquisition proposal. Under the terms of the agreement, 3PAR will have to pay Dell a termination fee of $92m (£59m) if it accepts a 'Superior Proposal'.

The storage firm will also have to enter into a multi-year reseller agreement with Dell.

Dell seemed to have had the deal tied up when it offered $1.15bn (£748m), or $18 (£11.70) per share just two weeks ago.

However, HP initiated a bidding frenzy with an improved offer. Dell has so far matched HP's advances, but it remains to be seen whether the firm is willing to pay well over $1bn (£650m) more than its original offer.