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Technology Stocks : Cisco Systems, Inc. (CSCO) -- Ignore unavailable to you. Want to Upgrade?

To: Amy J who wrote (68217)	7/2/2005 4:45:15 PM
From: William F. Wager, Jr.	Respond to of 77400

EMC Up After Web Column Speculates On Cisco Takeover... By ROGER CHENG July 1, 2005 3:47 p.m. Of DOW JONES NEWSWIRES NEW YORK -- EMC Corp. (EMC) rose 3% after an industry news Web site featured a column that speculated on the benefits of a merger between networking titan Cisco Systems Inc. (CSCO) and EMC. Both companies declined to comment, saying they don't comment on market rumors. Analysts were skeptical of the piece, featured on SearchStorage.com, a Web site devoted to the storage industry, with one emphasizing that the column was based on opinion. The article, which puts forth the rumor of Cisco paying $43 billion to buy EMC, appeared Friday on the Web site. It outlines the benefits of merging Cisco's networking business with EMC's storage server business. Cisco and EMC have worked together in the past. In January, Cisco began selling EMC's data-storage equipment alongside its own technology. Punk Ziegel & Co. analyst Steve Berg said, "It's a possibility, but not a probability." The analyst doesn't have any conflicts of interest to report. A major deal such as this wouldn't follow Cisco's normal acquisition strategy - it typically buys small start-ups for their expertise. A $43 billion deal would be its largest acquisition. Investors were buying EMC's Aug. 15 calls Friday. A call option gives investors the right to buy a stock at a set price in the future. EMC recently traded at $14.16, up 45 cents, or 3.3%, on higher-than-average volume. Cisco, meanwhile, slipped 14 cents, or 0.7%, to $18.94. It was trading at half its normal volume. -By Roger Cheng, Dow Jones Newswires; 201-938-2020; roger.cheng@dowjones.com