Data General Corp.
Dow Jones Newswires -- May 10, 1999
Data General Up 10% On Renewed Takeover Talk
By Johanna Bennett
NEW YORK (Dow Jones)--Shares of Data General Corp. (DGN) rose
11.6% Monday on renewed rumors that the computer maker is a takeover
target, according to market sources.
NYSE-listed shares of Data General recently were trading at 13 1/4, up 1 3/8,
on volume of 1.9 million, compared with average daily volume of 692,200.
But while they reported the rumors, market sources cautioned that such
speculation is hardly new. Similar stories have circulated in the past, driving up
the stock price for a short period of time.
"We've heard it 100 times before," said one Wall Street trader.
A Data General spokesman declined to comment on the rumors or the gain in
stock price, citing company policy.
Names of potential buyers for the Westboro, Mass., storage company varied
from market source to market source, with no clear favorite readily emerging.
Meanwhile, several sources appeared skeptical that a takeover was in the near
future.
Alan Miller of Trend Ways Wall Street Watch - which advises brokerage
firms and options traders - said that the entire storage sector was up Monday
afternoon, including Seagate Technologies Inc. (SEG), Quantum Corp.
(QNTM) and Western Digital Corp. (WDC).
Meanwhile, Robert Herwick, president of Herwick Capital Management, said
that the stock's chart indicated that it has made an "upset breakout" and
speculated that takeover rumors may have renewed old rumors.
"It's a one day shot," he said.
-Johanna Bennett; 201-938-5670
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