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Voltaire & FalconStor: Tech Winners & Losers

Voltaire and Radware shares surged on ongoing M&A speculation, while FalconStor was impacted by the shock departure of its CEO.

ARMONK, New York (

TheStreet

) -- Shares of

Voltaire

(VOLT) - Get Volt Information Sciences, Inc. Report

and

Radware

(RDWR) - Get Radware Ltd. Report

surged on Wednesday after

speculation

that the networking specialists could be

IBM

(RDWR) - Get Radware Ltd. Report

acquisition bait, while storage maker

FalconStor

(FSTOR)

TheStreet Recommends

plunged on the shock resignation of CEO ReiJane Huai.

Israeli Web site

Globes

touted

Cisco

(CSCO) - Get Cisco Systems, Inc. Report

rival Voltaire as a potential IBM target on Wednesday, hot on the heels of the tech giant's

acquisitions of Blade Network Technologies and Netezza (NZ) .

Switch maker Voltaire

is a partner of Blade Network Technologies, and

Globes

cites the two companies' technology as complementary. Voltaire investors responded quickly to the chatter, pushing the company's stock up 34 cents, or 5.86%, to $6.14.

There have already been

rumors linking Radware with both IBM and Hewlett-Packard (HPQ) - Get HP Inc. Report

, driving the company's stock northward earlier this month. Radware's stock rose sharply again on Wednesday, climbing $2.39, or 7.43%, to close at $34.57, although the application delivery specialist has declined to comment on the acquisition rumors.

IBM recently stated it would spend

$20 billion on acquisitions over the next five years

, but added that software companies are the main focus of its M&A effort. The tech giant has also warned that its aggressive acquisition strategy and organic growth

could be impacted by increased regulation of the derivatives market.

Shares of HP also rallied on Wednesday, climbing 91 cents, or 2.19%, to reach $42.53 as investors basked in the warm afterglow of

the company's solid 2011 guidance

, announced late on Tuesday. HP, which is still searching for a successor to ousted CEO Mark Hurd, also

outlined plans for its PalmPad tablet device

during the company's annual analyst meeting.

Shares of storage firm

FalconStor

(FSTOR)

, however, headed in the opposite direction on Wednesday. FalconStor

was the biggest percentage decliner on the Nasdaq after the data protection specialist announced the surprise resignation of CEO ReiJane Huai.

The shock resignation followed Huai's apparent disclosure that "improper payments were allegedly made" in connection with a single customer's contract.

FalconStor shares closed down 91 cents, or 22.4%, at $3.15.

--Written by James Rogers in New York.

>To follow the writer on Twitter, go to

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