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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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Sell 94% of your child
By lennylim on 1/11/2008 7:02:43 PM , Rating: 2
"I am a co-founder of Logitech. Would you be willing to sell your child?"

"I own only some 6 percent"

He obviously sold most of it in the past.

RE: Sell 94% of your child
By robber98 on 1/12/2008 3:37:45 AM , Rating: 2
Not necessary. 6% isn't a small number for a single person owing a company stock. FYI, Bill Gate owns about 9% of MS's stock.

RE: Sell 94% of your child
By TiberiusKane on 1/13/2008 1:29:08 PM , Rating: 2
Well, technically, though I don't know how much he originally owned compared to the other co-founders, this co-founder probably originally owned a bigger chunk than 6%. Even if he didn't sell his shares after the company became public, the IPO process diluted his founding ownership, thereby "selling" shares of "his child" to the public.

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