Tuesday was a bull market in takeover rumors.
First came rumors that Microsoftwould acquire Network Associates. Network Associates officials later said the rumors were unfounded, but the stock gained 4% on the day anyway, while rival Symantecslipped 2%.
While Network Associates insists it’s not up for sale, investors could be forgiven for assuming that everyone has a price. With a market cap of less than $3 billion, Microsoft would have $50 billion left to spend if it acquired the company.
More substantive was Larry Ellison’s shopping list. The OracleCEO’s list of potential takeover targets was revealed in a videotaped deposition from May and a year-old document, both of which were unveiled in the company’s battle with the Justice Department over its proposed acquisition of PeopleSoft.
Ellison said Siebelwas his second choice after PeopleSoft – and he asserted that founder and CEO Tom Siebel had offered to sell him the company. Also on Oracle’s wish list were BEA, Business Objects, Lawson Software, Cernerand Sybase.
It’s rare that investors – and competitors – get such a good glimpse into a company’s strategic thinking. No wonder Oracle fought to keep the list private.
Stocks rose Tuesday on strong earnings from technology stocks and brokerages.
The Nasdaq gained 19 to 1994, the S&P 500 rose 4 to 1134, and the Dow climbed 23 to 10,395. Volume rose to 1.38 billion shares on the NYSE, and 1.66 billion on the Nasdaq. Advancers led 17-14 on the NYSE, and 17-13 on the Nasdaq. Upside volume was 65% on the NYSE, and 68% on the Nasdaq. New highs-new lows were 93-28 on the NYSE, and 53-55 on the Nasdaq.
After the close, 3Combeat estimates.
During the day, palmOnesoared 37% after reporting blow-out earnings, while Pricelineslipped after raising guidance.
Broadcom, up 5%, gave chip stocks a boost with an upbeat conference presentation.
Lucentand JDS Uniphasewere among the gainers on SBC’sbig spending plans.
QLogicjumped 7% on a Merrill Lynch upgrade based on valuation.
Loudeyegained 11% on an acquisition.
Bankratefell 8% on the departure of its CEO.
Cablevisionlost 4% on steep price cuts for voice, video and data services.
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