NP/wire say Cognos a likely takeover targetHello to all,
NP/wire say Cognos a likely takeover target
2007-10-09 06:20 ET - In the News
The National Post reports in its Tuesday, Oct. 9, edition that Cognos may be an acquisition target. A Bloomberg dispatch to the Post reports that Roth Capital Partners analyst Nathan Schneiderman says SAP's announcement Monday it would buy Cognos rival Business Objects SA for $6.8-billion (U.S.) heightens the possibility that Cognos may be bought. "There is a sense of urgency" for Cognos to be aligned with a bigger company, says Mr. Schneiderman. He rates the shares "buy." Bloomberg notes that Mr. Schneiderman does not own any Cognos stock. He says Microsoft and International Business are likely acquirers. "At this point Cognos remains the last independent business-intelligence software vendor of size and presents a particularly attractive acquisition target in our view," says Goldman Sachs analysts Sasa Zorovic. He has a "buy" rating on the stock. Last month, Cognos said second-quarter profit rose 12 per cent to $26.5-million (U.S.), on sales of $252.4-million (U.S.). License revenue, a barometer for future sales, reached $87-million (U.S.). Cognos stock jumped 71 Canadian cents Friday on the Toronto Stock Exchange to close at $43.69 (Canadian).
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