HP launches $1.6bn bid for 3PAR

Hewlett-Packard launched a $1.6 billion bid for data storage company 3PAR Inc on Monday, countering a week-old offer by technology rival Dell Inc.

HP said it had bid $24 a share for 3PAR, or about 33 percent more than Dell planned to pay in a proposed deal announced one week ago. At the time, Dell’s bid for 3PAR, which makes storage products that use virtualization technology to allow companies to boost efficiency, marked an 87 percent premium to its share price.

HP, faced with turmoil in its top ranks after the resignation of Chief Executive Officer Mark Hurd, said its board has approved the deal. It said terms would be similar to those proposed by Dell, but would not include a termination fee. HP said its proposed deal would close by the end of the year.

Shares of 3PAR jumped 37 percent after the HP announcement. Shares of HP slipped 1 percent.