Speculation that Microsoft has targeted Logitech in an $8-billion takeover bid has sent the mouse manufacturer's shares soaring on the Zurich bourse.
Reuters reports that despite analysts dismissing the rumours, Logitech's shares rose by nearly 12% yesterday. If Microsoft did go ahead with the deal, it would be its biggest-ever acquisition.
Logitech board member and its biggest shareholder with a 6% stake, Daniel Borel, also dismissed the speculation.
"I am a co-founder of Logitech. Would you be willing to sell your child?" Borel told Reuters. "I have no reason to sell. But I will not be the one to decide. I own only some 6% so I will neither enable nor prevent a sale of Logitech.
"Rumours are rumours. I can't make any specific comment on them," Borel says.
Reuters says that rumours surfaced yesterday that Logitech, with a market capitalisation of about 7-billion Swiss francs ($6.3-billion), would receive a takeover bid at 48 francs per share from Microsoft.
This would be a premium of 38% to Wednesday's 34.80-franc closing price and value it at 9.16-billion francs.