Monday's Tech Winners & Losers
Updated from 11:03 a.m. EDT
Tech stocks continued to their upward climb Monday after Alltel (AT) agreed to be taken out by two investment firms.
Alltel rose 6.7% after the wireless company agreed to be acquired by TPG Capital and GS Capital Partners for $24.7 billion, or $71.50 a share in cash. The price represents a 10% premium over Alltel's closing price of $65.21 on Friday. "This transaction delivers substantial and certain value to our shareholders while providing the company with long-term partners who share our commitment to our customers, employees and the communities we serve," said Alltel. The deal is expected to close during the fourth quarter of 2007 or by the first quarter of 2008. Shares of Alltel closed up $4.39 to $69.60.
Elsewhere, The9 Limited (NCTY) jumped 10.3% after Electronic Arts (ERTS) agreed to buy some 15% of the online game operator. The investment is worth about $167 million. "This is another significant step in EA's strategy to build an online presence in Asia," Electronic Arts said. "The9's proven expertise will be a tremendous advantage in bringing FIFA Online to a growing market and we look forward to partnering with them to bring the best online football gaming experience to millions of Chinese gamers and football fans." Shares of The9 closed up $4.07 to $43.54.Meanwhile, Pegasystems (PEGA) climbed 10.3% after the software company swung to a first-quarter profit. The company earned $1 million, or 3 cents a share, on revenue of $37.5 million. During the year-earlier quarter, the company reported a loss of $900,000, or 3 cents a share, on revenue of $29.2 million.
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