RSA Confirms Transaction Talks
Updated from 10:05 a.m. EDT
RSA Security (RSAS) confirmed the company was involved in "strategic transaction" talks following media reports that the security-card maker is on the verge of being acquired.
The stock was halted preceding the annoucement. On the resumption of trading, shares were recently up $2.79, or 14.4% ,to $22.15. The previous 52-week high was $21.04.
"RSA Security is currently engaged in negotiations with parties regarding a potential strategic transaction," the company said in a short statement. "No definitive agreement has been reached. There can be no assurance that any agreement will be reached or that a transaction will be consummated."We do not plan to make future announcements with respect to this process unless and until our Board has approved a specific transaction and we have entered into a definitive agreement." According to the New York Times, storage giant EMC (EMC) was near a deal late Wednesday to acquire RSA for as much as $1.8 billion. RSA's market cap was $1.46 billion at Wednesday's close. An unidentified second suitor might be competing with EMC for RSA, the Times said. Bedford, Mass.-based RSA makes smart cards and biometric products for securing digital content and other assets. Last month, its shares were caught in a downdraft when the company was subpoenaed as part of the Securities and Exchange Commission's options-backdating investigation. EMC fell 2 cents to $11.23.
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