Updated from 2:32 p.m. ESTShares of Computer Network Technology ( CMNT) shot up Friday on rumors that it may be acquired by McData ( MCDTA). In recent trading, shares of CNT closed up 87 cents, or 15.1%, to $6.62 on volume that was nearly five times higher than average. McData, meanwhile, finished off 54 cents, or 12%, to $3.96. McData's slide was more than the typical response of investors knocking down a company intending to spend a lot of money, said analyst Shaw Wu of American Technology Research. "Investors aren't sure this is the right move for McData," he said. McData has been sliding for months, losing about 25% of its value since early November. McData, which manufactures switches for storage area networks, has been caught in a price squeeze, caused in part by Cisco Systems ( CSCO), which entered the market about 18 months ago, and Brocade, a traditional competitor. Few analysts see the pressure easing anytime soon, and there's been talk on Wall Street that
Berg, however, said he didn't know what was behind the stocks' movement on Friday.