By Sell Puts
My guess is Dell will come back with a higher bid considering the options activity in PAR. The 30 strike front and back months saw volume eclipse open interest, with September 30 calls trading over 16,000 contracts. My guess is Monday new series will be listed and the game will be on. Can these companies even afford this bidding war? Apparently so..
(AP Writes) Both PC makers can afford to continue bidding. Dell has $12.4 billion in cash and short-term investments at the end of last quarter. HP had $14.7 billion.
Dell first made a play for 3Par at $18 per share, or $1.13 billion, on Aug. 16. That was an 87 percent premium over its previous closing price of $9.65.
3Par shares rose $6.43, or 25 percent, to close at $32.46 on Friday after HP put in its latest bid, suggesting investors believe a higher bid is possible.
