Sep. 18, 2006

Symbol Technologies may be on the auction block and ready to close a deal, possibly with Motorola, according to The Wall Street Journal.

The speculation sent Symbol Technologies’ stock up Monday nearly 14 percent to $14.45 per share by midday.

A deal, rumored to bring Symbol Technologies as much as $15 per share, would be worth about $3.8 billion.

Motorola does not comment on rumor or speculation, according to Juli Burda, a Motorola spokeswoman. Symbol did not offer comment.

Speculation focused on Motorola because the Schaumburg, Ill.-based handset vendor has pursued RFID technology and related applications in the mobile enterprise and consumer markets.

Lehman Brothers analyst Jeffrey Kessler said in a research note to investors that Symbol Technologies’ shares have traded up in the past based on similar speculation, but that the Journal’s article cited sources close to the matter, lending credibility to the reports.

Kessler also wrote that Symbol Technologies appeared to have resolved management and operational issues since the appointment of a permanent chief executive officer in January.

The tech-investing bust earlier this decade hurt the company, and eight executives later plead guilty to various charges. Former CEO Tomo Razmilovic remains at large.

The company spurred speculation about a possible sale in the past year by reducing operational costs by $100 million and introducing new products, according to Baird analyst Reik Read.

In June, Symbol Technologies reported nearly $1.8 billion in sales and $97.2 million in net income for the year.

Source: RCR News