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Tech Sector Sinking Today; TIM Participacoes Near 2-Year High As Rivals Said Eyeing Brazilian Telecom
By: MT Newswires
Top Tech Stocks
Technology stocks are moderately lower with shares of technology companies in the S&P 500 falling 0.5% in afternoon trade.
In company news, TIM Participacoes SA ( TSU ) gained in Friday trade, advancing over 10% to its best levels in almost two years following reports that the Brazilian mobile-phone company may be the target of a takeover bid by one or more telecommunications companies.
Italy's Il Sole 24 Ore newspaper said Brazilian rival Oi SA ( OIBR ) is seeking to buy TSU, currently ranked No. 2 among the country's largest telecoms. Spanish telecom Telefonica SA ( TEF ) and America Movil ( AMX ), through its Claro unit, also are said to be in the hunt, according to the report.
TSU American depository shares recently pushed to a new intra-day high after easing slightly around mid-day. OIBR and TEF ADRS also are higher, with OIBR up near 20%. TEF was ahead 0.4% while AMX is flat to lower.
In other sector news,
(+) FEYE, (+34%, new 52 week highs) Acquires privately-held Mandiant, paying $106.5 mln in cash and issuing 21.5 mln shares of its common stock for the security products firm. Also issues upside Q4, FY14 revenue guidance, boosting Q4 revenue by $3 mln to $55 mln to $57 mln, topping estimates by at least $1.48 mln. Increases FY14 outlook by $170 mln to a range of $400 mln to $410 mln versus $248.74 mln consensus.
(-) RFIL, (-22.4%, but above day lows) Q4 preliminary net income declines to $0.11 per share from $0.12 in the year-ago period. Quarterly revenue declines 9% year over year to $8.4 mln, largely due to a drop in demand for cabling systems and more competitive pressure.