Yeh! when it drops like this one did, everyone bails!
however some good news is starting to surface....
Updated: Wednesday, January 24, 2001 04:46 PM ET Email this article to a friend!
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By Kathy Chu
Of DOW JONES NEWSWIRES
NEW YORK (Dow Jones)--Portal Software Inc. (PRSF, news, msgs) shares leapt 25% Wednesday on rumors about a possible alliance, or even a takeover, by media giant AOL Time Warner Inc. (AOL, news, msgs).
Market watchers have been expecting Portal to sign up AOL as a customer for almost a year now. But while the rumors have abounded, no deal has emerged yet.
Speculation, however, that the companies would soon announce such a deal resurfaced Wednesday, pushing up Portal's stock, according to analysts and a trader.
Also, an analyst who asked not to be named said that AOL may consider buying Portal, instead of just licensing Portal's billing-management system.
Although such takeover speculation also swirled in cyberspace, some analysts were skeptical, especially since AOL is still digesting Time Warner, and Portal Software would fetch a steep price considering its market capitalization of nearly $2 billion.
Portal spokeswoman Christina Dort said the company doesn't comment on rumors and will not release any further news Wednesday.
AOL couldn't immediately be reached for comment.
Shares of Portal recently changed hands at $11.63, up $3.09, or 36.3%, on Nasdaq volume of 16 million shares, compared with the average daily volume of 4.8 million shares. |
