Microsoft bidding for Logitech?
Shares in Swiss-based computer peripherals maker Logitech International SA rose as much as 12 percent on Thursday based on speculation Microsoft Corp would launch a takeover bid, traders said.
This while analysts dismissed rumors of an $8 billion Microsoft takeover bid as unlikely and Logitech board member Daniel Borel, the company’s largest shareholder, said he had no reason to sell his 6 percent stake. He declined to comment on the speculation.
Still, stranger things have happened in the gaming industry….
Such a deal would be Microsoft’s biggest ever and while the world’s largest software maker has recently shown a willingness to do bigger deals, it has focused most of its acquisitions on higher-margin Web and business software.
“I am a co-founder of Logitech. Would you be willing to sell your child?” Borel told Reuters in an interview.
“I have no reason to sell. But I will not be the one to decide. I own only some 6 percent so I will neither enable nor prevent a sale of Logitech.”
Traders said rumors circulated that Logitech, with a market capitalization of about 7 billion Swiss francs ($6.3 billion), would receive a takeover bid at 48 francs per share from Microsoft.
This would be a premium of 38 percent to Wednesday’s 34.80-franc closing price and value it at 9.16 billion francs.
“Rumors are rumors. I can’t make any specific comment on them,” Borel said.
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POSTED IN: 'Wire' Reports, Business Deals, Industry News, Rumors
1 opinion for Microsoft bidding for Logitech?
Mike
Jan 10, 2008 at 11:05 pm
Maybe M$ wants to get Logitech to make their useless gaming peripherals.
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