M&A Talk Still Swirling Around ArcSight
Story updated with additional information on rumored ArcSight meeting with employees.
CUPERTINO, Calif. (TheStreet) -- Acquisition rumors continued to swirl around ArcSight (ARST) on Thursday, a week after a news report first surfaced saying the company is on the auction block.
An industry source told TheStreet that the company is holding an "all-hands-on-deck" meeting with employees today, prompting speculation that this could be related to potential M&A. Subequently, the source added that the meeting may now be pushed out until Friday. ArcSight, which reports its first-quarter results after market close, has yet to respond to TheStreet's request for comment.
Last week the Wall Street Journal reported that ArcSight has put itself in the shop window. Citing people familiar with the matter, the Journal said that potential buyers, including Oracle (ORCL) and Hewlett-Packard (HPQ) could pay up to $1.5 billion for the company. EMC (EMC), IBM (IBM) and CA (CA) are also possible purchasers, the Journal added.ArcSight shares surged on the speculation, hitting a new 52-week high of $39.74 on August 27. The WSJ report, which theorized a deal could happen in the next couple of weeks, said ArcSight expects to fetch $40 a share. One of TheStreet.com's top security stocks for 2010 ArcSight makes security management and compliance software, and was recently cited as one of the sector's most attractive acquisition targets. The TheStreet's 'Breakout Stocks' portfolio has described ArcSight as "one of the most compelling secular growth stories in the market."
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