Shares of Dell Inc. fell on Tuesday as investors eagerly anticipated the computer manufacturer’s subsequently move in a bidding conflict with adversary Hewlett-Packard Co. with the winner gaining control of the storage company
3Par Inc.

What sparked it off- After Dell's $1.13 billion offer the previous week, HP moved in for the kill on Monday with a proposal of $1.5 billion.

That could compel Dell to settle up with even more cash to win the bidding.

What is really transpiring- Both companies want to seize 3Par in the battle to further diversify from the personal computer market, a race that HP clearly seems to be winning.

Buying 3Par would permit the computer manufacturers to step even further into "cloud computing," in which corporate customers pay for software that is delivered over the Internet, instead of housing it on their own computers.

The prognosis- The market appears to be anticipating another bid from Dell, pushing up shares of 3Par 85 cents, or 3.3 percent, to $26.94 on Tuesday, above HP's offer of $24 per share.

Robert W. Baird & Co. analyst Jayson Noland, in a note to clients, said he expects a higher offer as well, saying Dell has enough cash and a "desire to transition from being a manufacturer to an (information technology) solutions provider."

Dell's stock plunged 3.9 percent, or47 cents, to $11.47 on Tuesday. Previously, the shares hit a 52-week low of $11.34.