Wall Street Manna

An irreverent look at Wall Street

Thursday, September 2, 2010

Shopping list in storage

With Dell (DELL) conceding defeat to Hewlett-Packard (HPQ) in the bidding war for 3Par (PAR), the Street has returned to the business of trying to find the company something else to buy.

The Street’s suggested shopping list:

Compellent (CML) is up 99 cents, or 6.6%, to $16.
CommVault (CVLT) is up $1.11, or 4.5%, to $25.93.
Xyratex (XRTX) is up 21 cents, or 1.7%, to $12.71.
FalconStor (FALC) is up 16 cents, or 4.8%, to $3.51.
Isilon (ISLN) is up 42 cents, or 2%, to $21.59.
My money is on CVLT!

And here is the WSJ story:

Dell Inc. said it had pulled out of the bidding war for 3PAR Inc. after rival Hewlett-Packard Co. raised its offer for the data-storage company yet again to roughly $2.1 billion.

3PAR, which makes storage products used in cloud computing, accepted H-P's offer, valuing the company at $33 a share. 3PAR called it "superior" to Dell's latest offer. Dell earlier had raised its bid to $32 a share, boosted its break-up fee and proposed a multi-year reseller agreement.

Dell said it would not match H-P's latest offer. "We took a measured approach throughout the process and have decided to end these discussions," said Dave Johnson, senior vice president, corporate strategy. Dell will receive a $72 million break-up fee from 3PAR.

DELL was interested in CVLT before.

Now that PAR got away, and DELL has it's break-up fee, CVLT could be in DELL's crosshairs.


At September 2, 2010 at 12:47 PM , Anonymous Anonymous said...

what do you think the price of CVLT will be for DELL to buy?

At September 2, 2010 at 1:16 PM , Blogger Unknown said...

What do you think of ISLN instead of CVLT?

At September 2, 2010 at 1:37 PM , Anonymous Anonymous said...

Any thoughts on AMD?

At September 2, 2010 at 2:07 PM , Blogger Palmoni said...

Dell could pay the most--I think around 40

previously an analyst had touted 52 as a takeout for CVLT--but that was on just a rudimentary analysis

and ISLN, granted is sexier than CVLT--and it's takeover bait also

At September 2, 2010 at 2:17 PM , Anonymous Anonymous said...

Palmoni you have a whacked out sense of humor!

thanks for the research you post


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