HP has submitted an offer to 3PAR Inc for the acquisition of all of the outstanding shares of 3PAR for $24.00 per share in cash, valuing the business at $1.6bn.

The deal which counters Dell’s offer made last week– which was until now considered a done deal.

The proposed transaction, which is not subject to any financing contingency and has been approved by HP’s board, represents a 33.3% premium above the price proposed by Dell.

If approved by 3PAR’s board, the transaction would be expected to close by year’s end.

Under the terms of last week’s deal between Dell and 3Par, Dell has the right to match HP’s price. The original transaction also included a termination fee of $53.5m.

The move by HP comes weeks after the allegations brought up against Mark Hurd, its former CEO caused his ousting.