One of the big themes in technology for 2010 has been the scramble to buy up data storage companies. Perhaps the most interesting transaction was the bidding war for 3Par. HP (HPQ) paid a premium price to beat out Dell (DELL).

As margins on PCs and laptops continue to fall, the large computer makers are trying to find ways to boost margins. And data storage products are a key way to do this.

In late August, a report from the Wall Street Journal indicated that security software provider, ArcSight (ARST), was in the process of selling itself. The stock shot up to $38 per share.

And yes, ArcSight found a buyer: Hewlett-Packard (HPQ). The company has agreed to pay $43.50 per share, or roughly $1.5 billion. However, the shares of ArcSight are about 50 cents above the bid, indicating that another suitor may jump in. But for investors, it would be risky to speculate on this one. After all, ArcSight has already undergone an auction.

The tail-end summer heat has been heavily attributable to the mergers and acquisitions blaze. Companies are putting their cash to work on public companies fetching discounted equity prices in a market environment favoring safety (e.g., gold and bonds).

Recently, Hewlett-Packard (HPQ) edged out Dell (DELL) for the 3Par deal award. With an eye toward the future, HP displayed their powerful desire to own a piece of the data storage and cloud computing pie. Since Dell ended empty-handed, it's only a matter of time before the next stock is a tech heavyweight's prime target.

Today was up most of the day but it felt choppy compared to yesterday's gains. A strong gas supply, a tick up in housing data, and a small decrease in weekly jobless claims all helped to offer a strong market for many sectors. Here were today's unofficial closing bell levels:

Dow Jones 10,320.10 +50.63 (0.49%)
S&P 500 1,090.10 +9.81 (0.91%)
Nasdaq 2,200.01 +23.17 (1.06%)

The recent news about Dell, Inc. (DELL), Hewlett-Packard Company (HPQ), and 3Par, Inc. (PAR) is pretty interesting. Check out this article to be brought up to speed about the strange bidding war that's taken place. All of it got me thinking about Dell's equity.

At the moment, Dell is closer to its 52-week low of $11.34 than its 52-week high of $17.52. It finished today's session at $12.13. If you look at the narrow range through the perspective of a one-year chart, you'll note that the stock has experienced a pullback, one that began near the end of April.

Occidental Petroleum (OXY) closed up $3.19 to $75.42. WTI Crude futures closed up 2.73% to $75.36 according to Bloomberg. September put option implied volatility is at 29, November is at 33; versus its 26-week average of 32 according to Track Data, suggesting nondirectional price movement.

3Par Inc. (PAR) closed up $6.43 to $32.46. Hewlett-Packard Co. (HPQ) announced a revised proposal to acquire 3PAR for $30 per share in cash. PAR options were active on 190K contracts according to Track Data, suggesting larger price movement. Paul Foster

Options Update is by Stock Specialist Paul Foster of theflyonthewall.com.

Since its IPO a couple years ago, the shares of 3Par (PAR) have been fairly lackluster. Of course, this changed over the past week as the stock price has surged from $9.50 to $26. To ignite things, Dell (DELL) agreed to buy the company and then HP (HPQ) made a rival bid. And yes, Dell has come back to the table with yet a higher bid. Although, based on the current stock price of 3Par, investors think the bidding may continue.

3Par Inc. (PAR) closed up 94 cents to $27.03. Hewlett-Packard company (HPQ) offered to acquire PAR for $24 per share in cash. 3Par, a provider of utility storage, received an offer from Dell, Inc. (DELL) for $18 per share in cash on August 16. PAR overall option implied volatility of 49 is below its 26-week average of 56 according to Track Data, suggesting decreasing price movement.

EMC Corporation (EMC) closed down 45 cents to $18.08. EMC is trading below its 200 day moving average of $18.31. September put option implied volatility is at 30, December is at 33, April is at 36; versus its 26-week average of 28 according to Track Data, suggesting larger 2011 price movement.

Update is by Stock Specialist Paul Foster of theflyonthewall.com

Today was one of those perfect storms where nothing went right for the bulls. China's oil demand was brought down unofficially, existing home sales was the worst in years, Richmond Fed index data did not have any oomph, and Europe is acting like the problems of May and June are starting back up. The DJIA even momentarily went back under 10,000. Yet the market actually held up considering the run of bad news.

Here were today's unofficial closing levels:

Dow Jones 10,040.45 -133.96 (-1.32%)
S&P 500 1,051.88 -15.48 (-1.45%)
Nasdaq 2,123.76 -35.87 (-1.66%)

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It appears that computer firm Hewlett-Packard (HPQ) was not going to sit idly by and allow Dell (DELL) to purchase data storage firm 3Par (PAR). Reportedly, HP is bidding $1.5 billion for 3Par, more than Dell's offer of $1.13 billion.

This potential bidding war between California-based HP and Dell demonstrates that both companies are attempting to find larger profits by moving beyond personal computers. HP's offer comes to $24 per share, which is a 33% premium over Dell's $18-per-share bid.

Early Monday morning, Dell (DELL) announced that it is buying data storage company 3Par (PAR). The price tag for the transaction is roughly $1.13 billion in cash, which translates to $18 per share for 3Par. Compared to Friday's closing price ($9.65), Dell is paying an 87% premium for 3Par. 3Par specializes in products that are designed to minimize the costs of greater capacity and energy.

Dell expects the deal to help its adjusted profit during fiscal 2012. The boards of both companies approved the deal, which should close by the end of the year. Obviously, we will see shares of 3Par advance to the $18 region, as Dell has assigned this price on the firm's shares. However, what will we see out of Dell?