PC and printer maker Hewlett-Packard Company (
) on Thursday won the bidding war for storage specialist 3Par (
) over rival Dell Inc. (
), 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
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
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 (
) is not recommended at this time, holding a Dividend.com DARS™
Rating of 3.3 out of 5 stars.
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, as well as a detailed explanation of
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