This is from Bloomberg:
...“HP way, way, way overpaid,” said Kaushik Roy, an analyst at Wedbush Securities in San Francisco. “They need something to stop the bleeding,” he said, referring to HP’s market share in the computer-storage market. “Everything has a price.”
Dell’s latest bid, which was made privately and disclosed by 3Par, included an increased termination fee of $92 million as well as a multiyear reseller agreement if 3Par accepts a different offer, 3Par said. Dell said 3Par’s board didn’t accept the offer.
325 Times Ebitda
3Par gained 77 cents, or 2.4 percent, to $32.85 at 12:35 p.m. in New York Stock Exchange composite trading. HP rose 20 cents to $39.41. Dell advanced 33 cents to $12.45 on the Nasdaq Stock Market.
HP’s $33-a-share offer values 3Par at 325 times the company’s earnings before interest, taxes, depreciation and amortization during the past year. In 21 computer-services deals in the past five years, acquirers paid a median 16 times trailing Ebitda, according to Bloomberg data.
3Par offers hardware and software that make it easier and cheaper for companies to store information. HP and Dell are betting they can increase 3Par’s revenue by dispatching their larger sales teams to sell its gear, said Shannon Cross, an analyst at Cross Research in Livingston, New Jersey... |
