HP ups 3Par bid again

The bidding war between HP and Dell for data storage company 3Par is hotting up, with HP increasing its offer to beat a Dell counter bid.
HP has upped its offer to $27 per share (€21.22) from the $24 it first offered, after Dell increased its original bid from $18 last week, to $24.30 this week.
The latest offer values 3Par at $1.8 billion, net of cash, and is 11% higher than Dell’s $24.30 offer.
As well as the hefty purchase price, HP would have to pay $72 million to Dell by way of a break fee.
However, industry observers are concerned both firms are willing to pay too much for 3Par, an unprofitable startup, with EMC Products COO Pat Gelsinger telling FT.com that 3Par was “dramatically overvalued.”
HP rejected claims it was overpaying in a filing with the SEC, stating. “We have a strong business case and are confident this transaction makes strategic and financial sense.”
With a market value four times greater than Dell’s, HP has the depth to win a bidding war. But sources close to the deal told FT that Dell will only need to match HP's highest offer to secure 3Par.
HP shares fell 0.6% yesterday to $38.00. Dell stock dipped 0.3% to $11.75. 3Par shares, which were trading at $9.65 before Dell's initial offer, closed yesterday at $26.03.