By Rex Crum
Tech stocks were mixed in Thursday's trading action, as Intel
Corp's surprise $7.7 billion deal to acquire security-software
company McAfee Inc. highlighted the sector's action.
Intel (INTC) said it would pay $48 a share for McAfee (MFE) -- a
60% premium over McAfee's Wednesday closing price -- to acquire a
company that Intel said would help boost the security of its
mobile-wireless chip products, in particular.
"McAfee is the next step is this [mobility] strategy, and the
right security partner for us," Intel Chief Executive Paul Otellini
said, in a statement announcing the deal.
After the deal's completion, which still needs the approval of
McAfee shareholders, the company will become a wholly owned
subsidiary of Intel's Software and Services Group. .
After the deal's announcement, McAfee shares surged $17.22, or
almost 58%, to $47.14. Intel's gave up 52 cents a share, or 2.7%,
to fall to $19.06.
The tech sector remained largely in the red, with declines from
Apple Inc. (AAPL), Oracle Corp. (ORCL), Microsoft Corp. (MSFT) and
Yahoo Inc. (YHOO).
The Nasdaq Composite Index (RIXF) fell almost 27 points to
2,189. The overall market was disappointed by the latest first-time
filings for state unemployment benefits. The number of filers
unexpectedly rose last week to 500,000, the highest level since
last November.
Hewlett-Packard Co. (HPQ) fell 19 cents a share to $41.19 and
Dell Inc. (DELL) was off by 8 cents a share to trade at $12.12.
Both computer giants report quarterly results after the market
close.
Google Inc. (GOOG) fell $7.50 to $474.03 on the sixth
anniversary of the Internet search leader holding its IPO. When
Google went public, it priced its stock at $85 a share in an
initial offering of $1.67 billion.