Read More/Source: eWeek
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While analysts have been all over the dartboard judging the value of data storage giant EMC's $2.1 billion cash purchase of RSA Security, investors at the New York Stock Exchange reacted very sharply, as EMC's stock price tumbled 7 percent the day after the merger was announced.
"They paid an awful lot of dollars," Steve Berg, an analyst with Punk, Ziegel and Co., in New York, told Reuters. "Will that ultimately prove to be necessary? We'll see."
EMC's stock fell 80 cents to $10.45 in heavy NYSE trading just before the July 4 holiday. The Hopkinton, Mass., company reported 2005 sales of $9.7 billion.
RSA sells keychain-size SecurID devices that businesses use to control access to computer networks. It also has encryption technology that EMC will use to protect data stored on its hardware.
Jul 5, 2006, 02:12 PM
