Analyst Pooh-Poohs Netscape-Sun Takeover
Rumors
(02/04/98; 4:15 p.m. EST)
By Gabrielle Jonas, TechInvestor
Netscape shares jumped Wednesday on rumors that
Sun Microsystems would buy the struggling company.
Investors, however, should take the rumors with a grain
of salt, according to one analyst.
"There has been a tremendous amount of market
speculation about these guys," said Bill Burnham, senior
research analyst at Piper Jaffray. "But I think it's more
speculation than truth. A lot of this is people just
spinning tales, although I don't think anybody would be
surprised."
Just before market close, Netscape [NSCP] was up
about 6 percent, or 1 3/16, to 19 3/8. The company
rallied as much as 13 percent before pulling back.
Sun [SUNW] benefited from the rumor, as well, adding
5/16 to 48 15/16.
A Netscape spokesman would not confirm or deny that
the company may be acquired by Sun. "We're not going
to comment on rumors and speculation," Allison
Johnson, Netscape's director of corporate public
relations, told TechInvestor. "It is rumor and
speculation, and we're not commenting."
Sun, based in Mountain View, Calif., would not return
telephone calls.
"I believe it the rumor de jour, not unexpected in the
light of Netscape's difficulties," Burnham said. "With
Netscape stock down so much, it's the subject of a lot
of speculation. Right now, it strikes me as being more in
the rumor category than truth." |
