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US computer giant Dell dropped out of the bidding for 3PAR on Thursday after Hewlett-Packard raised its offer for the data storage company to 33 dollars per share or 2.4 billion dollars.

"We took a measured approach throughout the process and have decided to end these discussions," Dave Johnson, Dell's senior vice president for corporate strategy, said in a statement.

Dell ended its attempt to acquire 3PAR after HP, the world's largest computer company, topped its final offer of 32 dollars per share.

The 3PAR board said the company had informed Dell of its intention to terminate their merger agreement after a period of three business days and enter into a merger agreement with HP.

HP said its latest offer would expire on September 24.

Dell, whose bid was previously accepted by 3PAR's board of directors, said it is entitled to receive a 72-million-dollar break-up fee from 3PAR.

Computer giants HP and Dell had been bidding for 3PAR, which focuses on so-called "cloud computing" in which data is stored remotely, since Dell offered 18 dollars per share for the company in mid-August.

The companies are seeking to gain near-exclusive control over the market for advanced high-end data storage solutions, where 3PAR is the dominant player.

3PAR's technology enables large companies and government bodies to shift to "cloud" storage platforms, giving them extra speed in accessing data and cutting storage costs, according to the company.

Shares in 3PAR were up 2.31 percent at 32.82 dollars in late morning trading in New York while HP was up 0.61 percent at 39.45 dollars and Dell was up 1.24 percent at 12.27 dollars.

AFP