By Rex Crum
Technology stocks started the week on a strong note Monday,
posting gains in a session highlighted by Novell Inc. after the
business-software maker rejected a buyout offer but also said it
was exploring a sale of the company.
Novell (NOVL) shares climbed 2 cents, or 4.4%, to $5.89 after
the company said over the weekend that a $2 billion buyout offer
from private-equity firm Elliott Associates was "inadequate" and
undervalued the company. Elliott's offer valued Novell's stock at
$5.75 a share.
However, in a statement, Novell said its board of directors is
exploring several options, including a sale of the company. Elliott
also said it hasn't given up trying to acquire the once high-flying
software developer.
Led by Novell, the Nasdaq Composite Index (RIXF) rose almost 21
points to 2,395, while the Philadelphia Semiconductor Index (SOX)
climbed 2.4% and the Morgan Stanley High Index (MSH) also
advanced.
Gains came from Apple Inc. (AAPL), Oracle Corp. (ORCL), Dell
Inc. (DELL), Cisco Systems Inc. (CSCO), and Intel Corp. (INTC).
Hard-disk drive makers got a lift after the brokerage Brean
Murray gave an upbeat assessment of sector leaders Seagate
Technology (STX) and Western Digital Corp. (WDC).
Brean Murray analyst Ananda Baruah said in a research note that
Seagate and Western Digital appear headed toward posting strong
gross margins and results for the March quarter. Seagate shares
rose 78 cents, or 4%, to $19.71, while Western Digital climbed
$2.50 a share, or 6.6%, to $40.64.
Google Inc. (GOOG) shares gave up $2.50 to close at $557.50
after the Internet giant said it had stopped censoring the search
results on its Chinese-language search engine following weeks of
negotiations with the Chinese government.
Palm Inc. (PALM) retreated, giving up 2 cents a share to close
at $3.98. Earlier in the day, the company said that AT&T Inc.
(T) will begin selling the company's Palm Pre Plus and Pixi Plus
smartphones. No date for the release was set.