Hewlett-Packard Wins Bidding War for 3Par over Dell (HPQ, DELL)

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PC and printer maker Hewlett-Packard Company ( HPQ ) on Thursday won the bidding war for storage specialist 3Par ( PAR ) over rival Dell Inc. ( DELL ), as Dell decided to pull out of the competition.

HP's winning bid for 3Par amounted to $33 per share, which represents a massive 366% premium over 3Par's Aug. 13 closing price - the day before takeover rumors began.

Dell was willing to go as high as $32 per share for 3Par, which provides utility storage systems for medium-sized businesses. On Aug. 16, Dell began the bidding for 3Par with an $18 per-share offer. HP quickly followed with a higher bid , forcing Dell to up its offering price.

HP senior VP of corporate strategy said that "We took a measured approach throughout the process and have decided to end these discussions. We believe our strategy of creating open, affordable and capable solutions resonates well with customers and will enable us to continue to outgrow the industry." HP noted it expects the deal to close by the end of the fourth quarter.

Hewlett-Packard shares rose 32 cents, or +0.8%, in premarket trading Friday.

The Bottom Line
We had removed shares of HPQ from our recommended list back on Oct.1, 2009, when the stock was trading at $47.21. The company has a .81% dividend yield, based on last night's closing stock price of $39.68. The stock has technical support in the $35 price area. If the shares can firm up, we see overhead resistance around the $44-$46 price levels. We would remain on the sidelines for now.

Hewlett-Packard Company ( HPQ ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.3 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ, Inc.

Created by Dividend.com

This article appears in: Investing , Stocks

Referenced Stocks: DELL , HPQ , PAR



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