Dell ends bidding contest over data storage maker 3Par, will not match HP’s $2.07B offer

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Dell cedes data storage maker 3Par to HP

ROUND ROCK, Texas — Dell is walking away from a bidding contest with rival Hewlett-Packard for data-storage maker 3Par.

Dell Inc. says it will not match Hewlett-Packard Co.’s offer to pay $33 per share for 3Par Inc., or about $2.07 billion.

Dave Johnson, Dell’s senior vice president for corporate strategy, says the company “took a measured approach throughout the process and have decided to end these discussions.”

Dell boosted its offer to $32 Wednesday from $27, but before it could be made public, HP again raised the stakes Thursday morning.

Both PC makers were looking at 3Par as a way to build up their “cloud computing” businesses, delivering software, data storage and other services to customers via the Internet. 3Par could also help them cut data storage expenses.

THIS IS A BREAKING NEWS UPDATE. Check back soon for further information. AP’s earlier story is below.

ROUND ROCK, Texas (AP) — Dell is walking away from a bidding contest with rival Hewlett-Packard for data-storage maker 3Par.

Dell Inc. says it will not match Hewlett-Packard Co.’s offer to pay $33 per share for 3Par Inc., or about $2.07 billion.

Dell boosted its offer to $32 Wednesday from $27, but before it could be made public, HP again raised the stakes.

Both PC makers were looking at 3Par as a way to build up their “cloud computing” businesses, delivering software, data storage and other services to customers via the Internet. 3Par could also help them cut data storage expenses.