Monday, October 30, 2006

Reports L-3 Communications (LLL) New CEO Said He Would Consider Takeover Offers

According to reports over the weekend from the Financial Times, L-3 Communications Holdings' (NYSE: LLL) new CEO Michael Strianese said he would consider takeover offers, although the company is not seeking a buyer and has not been approached.

Takeover speculation has surrounded the L-3 since the passing of CEO Frank Lanza in June.

L-3 Communications is a leading provider of Intelligence, Surveillance and Reconnaissance systems, secure communications systems, aircraft modernization, training and government services.

Wednesday, October 25, 2006

Orckit Comm (ORCT) Higher on Takeover Chatter

Shares of Isreali telecommunication equipment maker Orckit Communications (Nasdaq: ORCT) are higher today on rumors the company could be the target of a takeover bid. The rumors follow news yesterday that fellow Isreali company, PowerDsine, Ltd (Nasdaq: PDSN) was acquired by Microsemi Corp. (Nasdaq: MSCC).
Recent talk has centered around Cisco (Nasdaq: CSCO) buying Orckit.
A representative at the company's outside investor relations firm confirmed that the rumors were the likely driver of today's stock action but had nothing else to report.

Orckit will release third quarter 2006 results on the morning of Tuesday, October 31, 2006.
Orckit is a provider of advanced telecom equipment targeting high capacity broadband services. The Company's products include Corrigent's CM-100 metro optical transport solution, based on RPR and MPLS technologies, delivering packet transmission services in the metro area.

Shares of Orckit are 16% higher to $8.58 in afternoon action Wednesday.

Friday, October 20, 2006

Wild Oats Markets (OATS) Higher On Takeover Chatter Following Non-Renewal of CEO's Contract

Shares of natural food grocer Wild Oats Markets (Nasdaq: OATS) are higher today on takeover rumors following a disclosure from the company that they did not renew the employment agreement of CEO and President Perry D. Odak. The term of Mr. Odak's current employment agreement expires on March 19, 2007.

One analyst said, while a takeover is always a possibility the high valuation could discourage buyers. The analyst also said, the company will more likely bring in a new CEO to turn around sluggish same-store sales and generate growth by acquiring new stores.

Wild Oats is 17% owned by supermarket billionaire Ronald Burkle's Yucaipa, who has said he continues to believe that the Company has substantial opportunities for future growth as developments in the supermarket and general retail sectors have continued to create attractive opportunities for the Company to acquire new stores and expand into new geographic locations. It is unknown if Burkel would support a buyout of Wild Oats Markets.

Shares of Wild Oats Markets are 6% higher to $18.40 in mid-day action Friday.

Monday, October 16, 2006

Napster (NAPS) Higher On Renewed M&A Chatter Following Analyst Note

Napster Inc. (Nasdaq: NAPS) is higher today on renewed takeover speculation following a research note from ThinkEquity analyst Darren Aftahi. The analyst said he doesn't expect a slowdown in M&A in the digital media sector, leaving NAPS as a prime target. He said the value of Napster in a deal is $5-$7 per share, but probably closer to the higher end.

In September, Napster said in response to recent third party interest in establishing strategic partnerships or potentially acquiring the company, it has retained UBS Investment Bank to assist the Board and management in its evaluation of strategic alternatives.

In today's research report, Aftahi said Napster is of more value to an acquirer with a very broadmarket reach. He said, "While we acknowledge there could be as many as 10-15 potential acquirers looking at Napster, we believe deals that make the most sense would include (NASDAQ: AMZN), InterActive Corp. (NASDAQ: IACI), Google (NASDAQ: GOOG), XM Satellite (NASDAQ: XMSR) and SanDisk (NASDAQ: SNDK).

Shares of Napster are 3.7% higher to $4.46 in afternoon action Monday.

Thursday, October 12, 2006

UBS Sees Possible Acquisition on McAfee (MFE)

UBS upgrades McAfee (NYSE: MFE) from Neutral to Buy and raises its price target to $32. The firm said the company could be an acquisition target after the executive departures.

McAfee Inc., headquartered in Santa Clara, California and the global leader in Intrusion Prevention and Security Risk Management, delivers proactive and proven solutions and services that secure systems and networks around the world.

Wednesday, October 11, 2006

Atmel (ATML) Higher on Reports Ex-CEO Could Launch Bid

Shares of Atmel (Nasdaq: ATML) are higher today on reports from the company's ex-CEO George Perlegos may be interested in making a bid for the company. According to the report, Perlegos has been meeting with private equity firms to discuss his plans.

Perlegos and others, including his brother Gus, were fired in August over the alleged misuse of corporate travel funds. However, the brothers sued Atmel accusing them of wrongful termination. A tentative Delaware court date is set October 17th

.Recent chatter that RDG Capital LLC could raise its $5.50 per share offer for Atmel have helped propel the shares recently. RDG Capital's offer, made in May, was spurned while Perlegos was still at the helm. His removal led to the speculation.

Yesterday, mutual fund giant Fidelity disclosed it raised its stake in Atmel to 11.7%.

Shares of Atmel are 3.5% higher to $6.21 in early action Wednesday.

Monday, October 09, 2006

Matria Healthcare (MATR) Lower on Rumors of Contract Loss

Shares of Matria Healthcare Inc. (Nasdaq: MATR) are under pressure today on rumors the company could have lost all or parts of the Unitedhealth Group Inc. (NYSE: UNH) contract. Apparently this was mentioned in a report from independent research firm Off Wall Street (we have not seen the report.) A contact we spoke with said the rumor may have some teeth, but the company stated that no single customer is more than 10% of their business - however UNH could be one of the larger contracts. No one at the company was available to comment.

Shares of Matria Healthcare are over 13% lower in afternoon action.

Thursday, October 05, 2006

Cypress Semi (CY) Sees Upside Action on Various Chatter

Cypress Semiconductor (NYSE: CY) has been seeing interest the past few sessions on rumors the company could be the target of a private equity buyout. In addition, rumors are abound the company may distribute its ownership in SunPower Corporation (Nasdaq: SPWR) to shareholders. SPWR was spun-off from CY last year.

Shares of CY are up 3% in mid-day action today, with volume running well ahead of normal. The stock was up 6.2% yesterday, also on heavier-than-normal volume.

3Com (COMS) Higher on Takeover Chatter

Shares of 3Com Corporation (Nasdaq: COMS) are surging today on heavier-than-normal volume on rumors the company could be the target of a private equity buyout. Shares are 12% higher in mid-day action.