NTAP buyout by IBM ???
cnnfn.cnn.com
<<<This is the first time we had heard rumors of a possible acquisition of Network Appliance. As it stands, it sounds a little far-fetched, mainly given the fact that the company is not necessarily a cheap buy. But if we had to make a guess, we think that IBM (IBM: up $2.09 to $117.16, Research, Estimates) would be a possible suitor. Why? With a market cap north of $200 billion, Big Blue has more than enough clout to acquire Network Appliance.
Also, IBM has a pretty comprehensive storage unit that, although fairly aggressive in the storage area network (SAN) space, is still developing a more broad-ranging NAS strategy. In that case, Network Appliance could fit like a glove.
Merger speculation aside, we continue to believe in the long-term upside potential for the storage sector. In the short term, however, we remain cautious. Despite the recent meltdown in stock prices, multiples remain very high. So until there are signs of significant improvement in earnings, it's hard to justify rushing back into the sector just yet>>>>>>> |
