Feeds

Investors bullish on report HP will acquire McAfee

Keeping Cisco at bay

Boost IT visibility and business value

Wall Street investors showed new optimism in the shares of anti-virus provider McAfee after financial analysts speculated it may be acquired by Hewlett-Packard.

On Monday, shares in McAfee rose $1.44 to $41.57, the biggest gain in two months following a report from Friedman Billings Ramsey & Co. that an acquisition of the security software company would help HP compete against Cisco Systems. Trading in options, which give an investor that right to buy shares at an agreed-upon price, reached its highest level in close to a decade, according to Bloomberg BusinessWeek.

More than 31,500 call options to buy McAfee stock changed hands during regular trading on Monday. That was 81 times the four-week average and 10 time the level for puts to sell, the publication said. The most active options were those to buy McAfee at $45 by June 18, followed by those to buy the shares at $45 by May 21. McAfee hasn't closed above that amount since October, according to Yahoo Finance.

"The addition of McAfee would significant strengthen the company's presence in security and develop a competitive edge" on Cisco, the Friedman Billings report stated. It went on to predict that mergers and acquisitions in the software industry would accelerate this year and next.

The spike in the number of options for May and June are signs that some investors agree. They stand to profit if McAfee shares rise above $45. ®

Maximizing your infrastructure through virtualization

More from The Register

next story
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Stick a 4K in them: Super high-res TVs are DONE
4,000 pixels is niche now... Don't say we didn't warn you
Philip K Dick 'Nazi alternate reality' story to be made into TV series
Amazon Studios, Ridley Scott firm to produce The Man in the High Castle
Bose says today is F*** With Dre Day: Beats sued in patent battle
Music gear giant seeks some of that sweet, sweet Apple pie
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
Too many IT conferences to cover? MICROSOFT to the RESCUE!
Yet more word of cuts emerges from Redmond
Joe Average isn't worth $10 a year to Mark Zuckerberg
The Social Network deflates the PC resurgence with mobile-only usage prediction
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Application security programs and practises
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Securing Web Applications Made Simple and Scalable
Learn how automated security testing can provide a simple and scalable way to protect your web applications.