Rumors...Microsoft interested in British Telecomm!!!!From Yahoo
Friday January 23 3:51 PM EST
Takeover rumors sweep high-tech world
CHICAGO (Reuters) - Rumors swept the high-tech world that takeovers were in the works involving some big names, with Microsoft rumored to be interested in
British Telecom and computer maker Gateway said to be up for sale.
Microsoft Corp declined comment Thursday on the market rumors that the company was considering a bid for British Telecommunications, Britain's one time
government owned telephone monopoly. But analysts were highly skeptical about any deal.
"We don't comment on rumors," a spokeswoman for the Redmond, Wash.-based software giant said.
Meanwhile, Gateway 2000 chairman and chief executive Ted Waitt again brushed off the rumors that the company may be an acquisition target, saying the personal
computer direct marketer will not be sold.
"We are serious about this business, we are not looking to sell this business," Waitt said in a conference call with the media.
Earlier, Gateway beat analysts' fourth quarter earnings expectations, reporting earnings per basic share of 60 cents a share. According to First Call, analysts had
expected lower profits, with the consensus estimate at 45 cents a share.
Gateway also announced that it has named an AT&T Corp executive, Jeffrey Weitzen, as president and chief operating officer, filling a vacancy that has existed since
July.
Waitt said Weitzen would not have joined the company if he were not confident in its future.
Last month, shares of Gateway surged 9 percent in one day as rumors that the company was an acquisition target resurfaced. Compaq Computer Corp had been
named as a possible buyer.
The Microsoft rumors seemed to be only remotely possible. One industry analyst said the rumor sounded extremely unlikely, noting that past Microsoft acquisitions
have been confined to the computer software industry.
He said it was possible Microsoft was in discussions with the British giant over ways to speed Internet access through emerging technologies such as digital
subscriber lines.
The biggest acquisition Microsoft ever attempted was a $2 billion deal to purchase rival software maker Intuit, which was dropped after the U.S. Justice Department
objected on antitrust grounds.
British Telecom has a market capitalization of about $60 billion.
British Telecom shares surged Thursday on takeover speculation that also mentioned AT&T Corp and other U.S. telecommunications companies as potential buyers.
Very interesting!!! |
