Dow Jones Newswires ASPT Article
by: AlanGreenSpam
11/17/1999 6:32 pm EST
Msg: 4568 of 4571
November 17, 1999
Dow Jones Newswires
Aspect Telecom Up 13% Amid Takeover Rumors
NEW YORK -- Aspect Telecommunications Inc.'s (ASPT) shares shot higher Wednesday
amid speculation that the company is a takeover target - rumors that analysts quickly rebuked.
"There are takeover rumors, but I don't think they're founded," said Chandan Sarkar, an analyst
at Soundview Financial Group.
Those rumors, published on message boards and the JagNotes.com and Stockrumors.com Web
sites, have helped to send the San Jose, Calif. company's stock 4 3/16, or 12.1%, higher to 38
on Nasdaq volume of 2.6 million shares compared to average daily volume of 958,100.
The message-board posting thought to have put the virtual rumor mill in motion said the company
was calling an all-hands meeting at 9:00 a.m. Eastern time Wednesday to discuss an impending
takeover of the company. That request seems odd to First Albany Corp. analyst Herbert Tinger,
who noted that the meeting would occur at 6:00 a.m. Pacific time, unusually early for a
California-based company.
Noting that speculation about the company as a takeover target has been in the market for
months now, Tinger said he recently met with Aspect's management and doesn't think any
merger deals will occur anytime soon. "I certainly didn't get the indication that they were willing
to turn over the reins," he said
Sarkar agreed. He said he spoke with reliable industry sources who also reject the idea that
negotiations are underway.
Yet, Sarkar said he wouldn't rule out a merger further down the road. "We do think Aspect is
going to be, in the long-term, merged with somebody ... but we discount the near-term rumors,"
he said.
Message board postings regarding the scuttlebutt speculate that the company plans to make an
announcement about the purported deal as early as Monday of next week.
Company officials didn't immediately return phone calls seeking comment.
The high-flying initial public offering of Quintus Corp. (QNTS), which provides similar online
customer service technologies to Aspect's, also helped to lift Aspect shares.
"Given Quintus' current market value, Aspect is undervalued," said First Albany analyst Tinger.
Quintus' initial public offering was priced at $18 a share, opened at 43 1/2 and hit a high of 55
before the market closed on Tuesday. Quintus' shares closed Wednesday at 49 7/8, giving the
Fremont, Calif., company, which has about 31.6 million shares outstanding, a market
capitalization of $1.57 billion.
That valuation surprised Tinger, who said "Aspect is worth more than Quintus" given its size and
its standing in the industry. He said the offering showed that investors have a healthy appetite for
anything Web-related in the customer-interaction space.
Tinger currently rates Aspect's shares accumulate. |
