SAN FRANCISCO (Bloomberg) — Dell Inc. declined to match Hewlett-Packard Co.'s $33-a-share offer for 3Par, ending a bidding war for the data-storage supplier that stretched into 18 days.

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

The decision to drop out of contention paves the way for HP, the No. 1 PC maker, to clinch its purchase of 3Par, adding data-centre products that would help it compete with storage leaders like EMC Corp. Dell began the public bidding for 3Par with an $18-a-share offer on August 16, and its most recent offer of $32-a-share was trumped. Dell said it's entitled to a $72 million termination fee.

HP is "probably able to digest something like this a little bit better", said Aaron Rakers, an analyst at Stifel Nicolaus & Co. in St. Louis, who recommends buying HP and Dell shares.

Gina Tyler, a spokeswoman for Palo Alto, California-based HP, declined to comment.

HP's offer is more than three times the $9.65 closing price for 3Par stock on August 13, before Dell's initial bid was made public. It's also about 10 times 3Par's total revenue over the past four quarters.

The premium reflects a growing urgency for the computer makers to use acquisitions to fuel growth and underscores the dearth of affordable runners up capable of helping them vie with EMC.

HP's $33-a-share offer values 3Par at 325 times the company's earnings before interest, taxes, depreciation and amortisation during the past year. In 21 computer-services deals in the past five years, acquirers paid a median 16 times trailing Ebitda, according to Bloomberg data.

3Par offers hardware and software that make it easier and cheaper for companies to store information. HP and Dell are betting they can increase 3Par's revenue by dispatching their larger sales teams to sell its gear, said Shannon Cross, an analyst at Cross Research in Livingston, New Jersey.

In addition to strengthening its storage products, HP wants to show it can clinch the deal following the departure of its chief executive officer, Rakers said. Former CEO Mark Hurd left August 6, after a probe found inaccurate expense reports filed by him or on his behalf had the effect of concealing a personal relationship with a marketing contractor.