3PAR Determines Revised HP Proposal Is Superior
FERMONT, CA - 3PAR, the leading global provider of utility storage, announced in a press release that it has received a revised proposal from Hewlett-Packard Company (HP) to acquire all of 3PARs outstanding common stock at $33 per share, which is an increase from its previously announced offer price of $30 per share.
The 3PAR board of directors has determined that HPs revised proposal constitutes a Superior Proposal (as that term is defined in 3PARs merger agreement with Dell). Accordingly, 3PAR notified Dell of its intention to terminate its merger agreement with Dell immediately following the expiration of the three business day period contemplated by, and the satisfaction of the other conditions set forth in, its merger agreement with Dell in order to enter into a merger agreement with HP on the terms set forth in HPs revised acquisition proposal.
Although 3PAR previously notified Dell of its intention to terminate its merger agreement with Dell, the merger agreement was not terminated and remains in full force and effect. Following 3PARs notice of intent to terminate the merger agreement, and prior to receiving HPs revised acquisition proposal, 3PAR received a revised acquisition proposal from Dell in which Dell increased its offer price from $27 per share to $32 per share. Dells revised acquisition proposal also included an increased termination fee of $92 million payable by 3PAR to Dell as a condition to accepting a superior proposal, and a multi-year reseller agreement with Dell, which would by its terms be assumed by an acquirer of, or successor in interest to, 3PAR in the event of a change in control of 3PAR (including the acquisition of 3PAR by HP or another third party), and which contained fixed pricing and other terms that the 3PAR board of directors determined to be unacceptable.
The terms of 3PARs merger agreement with Dell require the 3PAR board of directors to continue to recommend that 3PAR stockholders accept Dells cash tender offer, and tender their 3PAR shares pursuant to Dells tender offer, so long as the merger agreement with Dell remains in effect. Accordingly, at this time, since the merger agreement between 3PAR and Dell remains in effect, 3PARs board of directors continues to unanimously recommend that 3PAR stockholders accept the cash tender offer made by Dell and tender their shares of 3PAR common stock pursuant to such offer.
3PAR is the leading global provider of utility storage, a category of highly virtualized, dynamically tiered, multi-tenant storage arrays built for public and private cloud computing.
