Hewlett Packard (HP) and Dell are locked in an intense battle for control of 3Par, a data storage firm that will provide a significant advantage in the industry to whichever company wins; HP has raised the stakes with a fresh US$1.8 billion offer.

HP’s move came just days after Dell matched the company’s previous offer of US$1.6 billion.

3Par had previously signed a takeover deal with Dell, but that agreement also stipulated that Dell would have to match any further offers made by competitors.

The rivalry between the two companies is over a new technology developed by 3Par that allows users to access files on their computers remotely.

The takeover battle has been characterized by some as a David and Goliath scenario. Hewlett Packard is the largest computer maker in the world with net-earnings of US$1.77 billion in the second quarter of 2010, while Dell is the world’s third largest with US$545 million in net-earnings for the same period.

HP therefore has much greater resources on which to draw, but industry analysts have questioned whether the bidding war will go any further, as 3Par is not perceived by shareholders to be worth much more than the current offer.