Source: WSJ Interactive (date: 3/20/98)
<<<NEW YORK -- CyberGuard Corp. shares were up 81.25 cents, or 7%, to
$12.4375 Friday, after rising 20% Thursday, in a rally analysts attributed to
rumors about a potential acquisition and increased awareness of the company
among industry players.
"Since [CyberGuard] is in the computer security area, it looks like a potential
candidate to be acquired," said Kama Krishna of Laidlaw Global Securities Inc.
He said market-watchers are "speculating because there are certain patterns" in
the industry, citing recent merger announcements.
On Feb. 5, shareholders of Axent Technologies Inc. and Raptor Systems Inc.
approved the proposed merger of the two companies. On Feb. 23, Network
Associates Inc. -- itself the product of the December marriage between Network
General Corp. and McAfee Associates -- announced it will buy Trusted
Information Systems Inc. in a stock swap valued at more than $300 million.
Earlier this week, shares of security-software firm Secure Computing Corp.
surged as rumors circulated that the company could be the next to be snapped up
as an acquisition.
E. Brian Harvey of First Asset Management said CyberGuard is also becoming
more well-known among related companies.
"This being a firewall company, they're gaining recognition," Mr. Harvey said. He
didn't want to comment on takeover rumors, saying they are just that: rumors. He
noted, however, that the company hired SoundView Financial Group Inc. last
November to help plot its fiscal future.
A spokeswoman for the Fort Lauderdale, Fla., company acknowledged takeover
rumors are circulating, but wouldn't comment on them.
She said some of the recent stock strength could be a result of the company's
inclusion in recent industry roundup stories in the media and in an Internet stock
index. She also said there has been "strong institutional interest in the stock in the
past few weeks."
CyberGuard sells firewall products for both the Unix and Windows NT
environments.
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