3PAR Inc. Investor Alert – Board Under Investigation

After 3PAR Inc. announced its takeover by Dell an investigation on behalf of investors of 3PAR Inc. (NYSE:PAR) over possible breach of fiduciary duty was announced.

3PAR Inc., located in Fremont, California, is a global provider of utility storage systems for mid-sized to large enterprises, financial services firms, cloud computing service providers, consumer-oriented Internet/Web 2.0 companies, and government entities. On Monday, August 16, 2010, 3PAR Inc. announced that Dell has signed an agreement to acquire 3PAR in a transaction that is valued at approximately $1.15 billion, net of 3PAR's cash. Under the terms of the agreement, Dell will commence a tender offer to acquire all of the outstanding common stock of 3PAR for $18 per share in cash. According to3PAR Inc its board of directors approved the terms of the acquisition.

3PAR Inc. shares (PAR) traded before the announcement roughly about $10 per share and jumped almost $86percent in response to the news to its52weekHigh of $17.95 per share. 3PAR Inc. reported increasing revenue over the past four years from $66.17million for the past 12months on March 31, 2007, to $118.02million on March 31, 2008, to $184.72million on March 31, 2009, and to $194.28million on March 31, 2010. Its Net Income rose from a Net Loss on March 31, 20007 of $15.48million to a Net Loss of $3.18million on March 31, 2010.

The investigation by a law firm “concerns whether Dell., as well as the directors of 3PAR Inc. Breached their fiduciary duties by not acting in 3PAR Inc. (NYSE:PAR) shareholders' best interests in connection with the sale process of 3PAR Inc. and whether the 3PAR Board of Directors breached their fiduciary duty to 3PAR Inc. (NYSE:PAR)”.