Shares of security device maker Radware (RDWR) surged by 40 percent on Wednesday, due to speculation that the company is in talks to get acquired by Hewlett-Packard (HPQ) or IBM (IBM). According to a “Globes.com” story, the deal is expected to be around $945 million, or $45 per share, representing 60% premium on the market price. The company’s PPS has not been that high since FY 2000.
Globes.com said that Tel Aviv, Israel-based Radware, which is part of the RAD Group, a collection of technology companies, declined to comment on the report. IBM said that the company does not comment on rumor and speculation. HP also declined to comment.
RDWR, whose 1-year forward P/E , based on FY11 EPS estimates, currently stands at 22.6x, gained $10.85, or 39%, to $38.72 rtq. at 3:52 E.T. in Nasdaq composite trading.
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