EMC, Shutterfly Rise on Separate Deal Rumors As Markets Decline

SAN FRANCISCO (TheStreet) – Despite the broader markets giving up ground Monday, several tech companies managed to pull ahead, in part fueled by acquisition rumors and announcements.

Data storage giant EMC (EMC) , for example, closed at $29.68 a share, up 0.51%. The company reportedly had been in merger talks with Hewlett-Packard (HPQ) and deal discussions with privately held Dell, according to a report in The Wall Street Journal. And although the merger talks with HP have been sporadic and nearly a year long, they recently concluded with no deal being done, the publication reports. The status with Dell remains uncertain, but likely to fall short of a full blown buyout of the company.

Shutterfly (SFLY) gained throughout the day, finally closing at $50.12 a share, up 5.47%. The back story on the photo sharing company is that Silver Lake Partners is fairly far along in talks to acquire the company for more than $50 a share, says FinancialJuice. But this private equity firm is not the only one contemplating a deal with Shutterfly. Other private equity firms, namely Bain Capital and Hellman & Friedman, may also be interested.

Adobe (ADBE) , which announced Monday an acquisition of mobile software developer kit maker Aviary, also saw its shares rise at the close to $67.20, up 0.39%. But for this software titan, the impact of its acquisition announcement is apparently having the opposite affect of the M&A rumors surrounding Shutterfly and EMC. Adobe made its acquisition announcement after the market's close, with investors pushing its shares down 0.4% to $66.94 in after-hours trading.

Other tech companies managed to pull ahead in Monday's trading, without the lift or baggage of M&A rumors or announcements.

Business-to-business technology company ChinaNet Online  (CNET) , for example, closed up a sizable 62.79% to $3.19 a share. That's a continuation of a rocket ride the stock has been on since Friday, when the company announced it was talking to online shopping site Taobao, a unit of Alibaba (BABA) , about a partnership. On Friday, ChinaNet's shares soared 92.1% to close at $1.96 a share.

At the time of publication, the author held no positions in any of the stocks mentioned, although positions may change at any time.

This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.

TheStreet Ratings team rates EMC CORP/MA as a Buy with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation:

"We rate EMC CORP/MA (EMC) a BUY. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, expanding profit margins, good cash flow from operations and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had sub par growth in net income."

You can view the full analysis from the report here: EMC Ratings Report

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