HP makes $1.5B bid for 3Par, topping Dell's offer

SAN FRANCISCO (AP) — The world's two biggest personal computer makers are locked in a pricey struggle over which can move away from the PC business the fastest.

Hewlett-Packard Co. offered $1.5 billion today for 3Par Inc., a company whose data-storage machines are designed for "cloud computing," or delivering services over the Internet. HP's rival, Dell Inc., last week offered about $400 million less for 3Par, and many analysts and investors expect Dell to make a sweeter counteroffer.

HP's offer comes just weeks after HP CEO Mark Hurd's ouster over inaccurate expense reports and shows that the company is committed to keep growing through acquisitions, even without him at the helm.

The willingness to spend so much money on such an obscure company underscores how aggressively both companies are about moving into more profitable markets than PCs.

Cloud computing is one of those markets.