December 12, 2001
Ariba Up 7%; Rumors Circulate That Co May Be Acquired
By Nick Baker
Of DOW JONES NEWSWIRES
NEW YORK -- Rumors that Ariba Inc. (ARBA) may be purchased flooded Internet chat rooms devoted to the company Wednesday, presumably giving Ariba shares as much as a 15% boost on volume over three times the daily average of 5.98 million shares.
Shares are higher "on a takeout rumor, which we think is unmitigated bull," said an arbitrage trader. "It's all over the chat rooms."
Ariba's stock closed up 18% Monday on volume of 27.7 million shares, and up 4% Tuesday on 25.9 million shares traded.
An Ariba spokeswoman declined comment except to say that the company has no news to report.
Dan Leben, an analyst with Robert W. Baird & Co., agreed that a takeover is unlikely: "I can't think of any buyer at this price. The valuation is so steep."
He added that he hasn't heard any "credible" rumors about Ariba in the past few days.
Ariba might find a buyer if it "gains more traction" in its direct materials procurement business, said Heather Bellini, an analyst with Salomon Smith Barney. This unit helps clients make purchases directly related to the cost of goods sold.
Ariba shares recently traded up 9.1%, or 60 cents, to $7.21, on volume of 21.2 million.
-By Nick Baker, Dow Jones Newswires; 201-938-4047; nick.baker@dowjones.com
Reporter Janet Whitman contributed to this report.
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