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Logitech on the up amidst Microsoft bid talk

In the world of computer users, there are two types of mouse and keyboard users – those who prefer Microsoft and those who prefer Logitech. Oddly enough, Microsoft itself may prefer Logitech as stock traders speculated that the software giant would launch a takeover bid for the Swiss-based peripherals maker.

Shares of Logitech surged up to 12 percent based on the trader talk, despite comments from Logitech’s Daniel Borel expressing no desire to sell his stake in the company.

"I am a co-founder of Logitech. Would you be willing to sell your child?" Borel told Reuters in an interview. "I have no reason to sell. But I will not be the one to decide. I own only some 6 percent so I will neither enable nor prevent a sale of Logitech."

Buzz circulated in the market that Microsoft prepared a takeover bid of 48 francs per share for Logitech. "Rumours are rumours. I can't make any specific comment on them," Borel added.

Not everyone believes that the Logitech shares jump is a result of an impending takeover. "Today's share price rise is probably more related to a rebound in the market than any rumours," said an analyst at bank Vontobel.

Furthermore, even if Microsoft were interested in buying Logitech, the company would first need to overcome antitrust regulatory issues.

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RE: Monopoly much?
By FITCamaro on 1/11/2008 3:48:43 PM , Rating: 4
And honestly I'm not sure they would be able to buy Logitech. It would give them probably over 95% of the keyboard and mouse market.

I guess if I had to have an opinion about the takeover, I'd prefer Microsoft not take them over. Two separate companies will produce better products at a better price with the competition in the market place existing than if it doesn't.

RE: Monopoly much?
By TomZ on 1/11/2008 4:26:25 PM , Rating: 2
I don't think they would combine to that high of a marketshare. Last I remember, a few years back, is both companies each having in the 20-30% share.

RE: Monopoly much?
By darkpaw on 1/11/2008 4:33:57 PM , Rating: 5
Might be a large % of the high end kb/mouse market, but the vast majority of those products are produced at the ultracheap end.

Logitech and MS both have products at that end, but theres also tons of no name competitors that have a pretty good size share.

RE: Monopoly much?
By qwertyz on 1/13/08, Rating: -1
“Then they pop up and say ‘Hello, surprise! Give us your money or we will shut you down!' Screw them. Seriously, screw them. You can quote me on that.” -- Newegg Chief Legal Officer Lee Cheng referencing patent trolls

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