The Banking and Strategy Initiative

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Dealbook: The other tech bid is doing just fine!

Image representing Dell as depicted in CrunchBase

Image via CrunchBase

The new economic size for a game worthy of following is $1.6 billion. It is the size of a few funds and a few IPOs, It is also the size worth Dell’s gambit for finally a straight play on economic prices. The bid is of course for 3PAR, as they outbid rivals HP in a little daily game that is keeping markets from sleeping off the double dose of crisis and economic dis-opportunity from home sales to retail same store sales and other such.

Aug 23: Hewlett has fired a huge counter to Dell’s opening salvo. Hewlett is offering  $24 a share — a 150 percent premium to 3Par’s share price before the bidding and 33 percent more than Dell’s bid of $18 a share. The bidding may have already priced out some would-be suitors, like NetApp, but there’s still room for rivals with deep pockets, like Oracle. Indeed, some may have already shown their hand.

Aug 26:Dell said Thursday that the data storage company 3Par had accepted its revised offer of $24.30 a share in cash, a bid that values the company at $1.6 billion, net of the target company’s cash.

Dell’s initial agreement to buy 3Par for $18 per share was upset when Hewlett-Packard stormed in with a higher bid this week. 3Par said Wednesday that it was in talks with H.P. over the higher offer.

Image representing Hewlett-Packard as depicted...

Image via CrunchBase

Meanwhile those who remember the giant $28 billion deal for Alcon from Novartis have been busy reading up too. Nestle sold its owned 77% interest in Alcon to Novartis in tranches over 3 years as shareholders luckily ended up with Novartis not having to make another open offer for their 23% . The previous stock swap offer from Novartis for the Nestle stake at 2.8 Novartis shares ( US $ 142) was rejected by the Alcon Board. The new offer is an all cash $28.3 billion at $181 per share. this is for the 50% stake still owned by Nestle. Novartis hugely overpaid for the transaction but monoity shareholders are still not satsfied with the transaction while Novartis is yet to come out of its weight on the stock and its own sales growth.  Alcon has annual sales of over $6.5 billion in Opthalmology products in Intra Oculr lenses for Cataract and speciality medicines for Glaucome etc while Novartis has a contact lenses division around CIBA vision and complementary medicines not in Alcon’s eye portfolio


This entry was posted on August 26, 2010 by in Private Equity, Retail Lifestyle, US and tagged , , , .


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