Re PRGN: Kernan has mentioned this on CNBC, but here's the details on analyst's "reversal" and "upgrading" today -- ALSO item on PRGN/EDS deal announced today...
===================
1) April 10, 2000 1:19pm
Peregrine Systems gains after analyst does about-face
By Larry Barrett ZDII
Less than a week after downgrading Peregrine Systems, Prudential Securities had a change of heart Monday. It upgraded the business software developer back to a "strong buy" recommendation, helping to push the stock up 3 7/16, or 10 percent, to 37 1/16.
On Thursday, Prudential analyst David Breiner cut the stock from a "strong buy" rating to "accumulate" after the company said it would buy e-business software developer Harbinger Corp. (Nasdaq: HRBC).
At the time the deal was announced, Peregrine (Nasdaq: PRGN) shares were trading around $60 a share, making the deal worth about $2.1 billion.
But Peregrine shares have been unable to snap out of their descent.
In late March, the stock was trading at a 52-week high of 80 5/8 after splitting 2-for-1 in February.
On Monday, Breiner boosted Peregrine's 12-month price target to $62 a share from $46, saying the stock had been "oversold" and that he's more optimistic about the acquisition.
"Peregrine will benefit by receiving additional revenue as well as cost savings," he said in a research note. "Both companies have been investing heavily on marketing, which can be combined now."
Harbinger shares were up 2 3/16 to 26 13/16 Monday afternoon.
The deal will merge Peregrine's employee self-service and electronic infrastructure management products with Harbinger's business-to-business e-commerce delivery solutions, the companies said in a statement.
Peregrine had been willing to pay an 80 percent premium for Harbinger based on last week's stock price.
The deal is expected to close sometime in July.
Eleven of the 12 analysts covering the stock maintain either a "buy" or "strong buy" recommendation.
-----------------------
2) Monday April 10, 12:41 pm Eastern Time
EDS and Peregrine Systems(R) Enhance Client Service Delivery
PLANO, Texas, April 10 /PRNewswire/ -- EDS (NYSE: EDS - news) today announced that it will streamline its end-to-end service delivery capabilities to clients standardizing on the Web-enabled technologies of Peregrine Systems, Inc. (Nasdaq: PRGN - news). This enhancement to EDS' infrastructure management systems will allow its clients e-access to initiate and monitor their own service requests.
The Peregrine Systems products will enable EDS' to implement best-in-class processes for clients and agents, reducing IT support costs, improving efficiency of existing IT staff, and improving service levels by integrating delivery processes in three important operational areas. First, the integration of cross-functional processes such as Service Request Management, Asset Management, Problem/Change Management, and Service Level Management; second, the integration of cross-functional processes with core infrastructure management systems; and third, the global integration of all EDS geographic delivery centers.
``With this decision EDS has further validated the strategic importance of infrastructure management,' said Steve Gardner, president and CEO of Peregrine Systems. ``By implementing our solutions, EDS and its customers will be able to lower the total cost of ownership for their corporate technology infrastructures while improving service.'
``This agreement further enhances EDS' leadership in the e-business and Web hosting arena,' said Steve Heidt, president, Global Delivery, EDS. ``We'll use these products throughout EDS to e-enable our infrastructure management and to enable self help for our clients and employees. We anticipate improved management of asset life-cycles, which will translate into higher service levels and improved results for our clients.'
About Peregrine Systems
Peregrine Systems is the leading provider of Employee Self Service and e-Infrastructure Management solutions that help ensure the reliability, productivity and cost-effectiveness of organizational infrastructure. Peregrine Systems provides Infrastructure Management solutions to organizations to permit them to manage the availability and cost of their technology, facilities, and transportation infrastructure. Peregrine Systems also provides Get.It!(TM) Employee Self Service Weblications(TM) to allow any employee in the organization to get what they need to get their job done. By integrating Employee Self Service Weblications, such as e-Procurement, with total life-cycle infrastructure management, our solutions empower organizations to make better and faster business decisions. In a world moving toward 24-hour global e-Business, e-Infrastructure Management coupled with Employee Self Service is a key to competitive success.
Founded in 1981, Peregrine Systems is headquartered in San Diego, California with offices throughout the United States as well as in the United Kingdom, Belgium, Canada, France, Germany, Denmark, Italy, Japan, Netherlands, Sweden, Australia and Singapore. Peregrine Systems also has alliance partners and distributors located throughout these regions and in Latin America. More information on Peregrine Systems is available on the World Wide Web at peregrine.com.
About EDS
EDS is a recognized global leader in providing E-business and information technology services to 9,000 business and government clients in about 50 countries around the world. Having founded the IT services industry more than 35 years ago, EDS delivers high value management consulting, electronic business solutions, business process management, and systems and technology expertise to help clients simplify complexity and achieve superior value in the digital economy. The company brings deep industry practice knowledge to solve challenges in a wide variety of industries, including communications, energy and chemicals, financial services, government, healthcare, products and retailing, and travel and transportation. EDS reported revenues of $18.5 billion in 1999. The company's stock is traded on the New York Stock Exchange and the London Stock Exchange. To find out more about the EDS vision, visit EDS via the Internet at eds.com.
Peregrine Systems is a registered trademark and Get.It! and Weblications are trademarks of Peregrine Systems, Inc. All other trademarks are the property of their respective holders.
CONTACTS:
Kelly Cunningham- EDS
(972) 604-6669
kelly.cunningham-eds@eds.com
Valerie Motis-Peregrine Systems, Inc.
(858) 720-5278
vmotis@peregrine.com
|
