read this : Linux Continues To Surge
https://www.crn.com/search/display.asp?ArticleID=13585
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LAST WEEK ON WALL STREET: STOCK RECAP
Linux Continues To Surge Even As The Fed Reserve Raises Interest Rates Again
By Sandy Portnoy Computer Reseller News
New York
4:06 PM EST Fri., Feb. 04, 2000
Linux stocks surged on Wall Street and the Federal Reserve raised interest rates.
After a down day on Monday, technology stocks helped the Dow Jones Industrial Average and the Nasdaq climb.
The Dow Jones Industrial Average gained 10 points to close at 11,013 Thursday, compared with 10,739 on the previous Friday. The Nasdaq added 137 points to close at 4,211 Thursday, compared with 3,887 on the previous Friday.
As expected, the Federal Reserve raised short-term interest rates by a quarter of a percentage point on Wednesday. The Federal Reserve raised rates three times last year.
On Wednesday shares in VA Linux Systems Inc. (LNUX), Andover.net Inc. (ANDN) and Red Hat Inc. (RHAT) soared following the news that a new Linux software to run on Intel Corp.'s next-generation microprocessors was ready to be released.
VA Linux Systems jumped $29 to $136.88, a 27 percent climb; Andover.net Inc. rose $7.13 to $36, a 25 percent jump; and Red Hat increased $15.50 to $108, an increase of 17 percent.
On Thursday, shares of Andover.net were up 25 percent after the Acton, Mass.-based company revealed it was being acquired by VA Linux Systems, Sunnyvale, Calif. VA Linux Systems shares were slightly off. Andover.net was up $9.13 to $45.13, while VA Linux Systems shed $8.88 to $128, a 6 percent slip. The transaction is valued at $913.3 million in cash and stocks.
Both companies launched initial public offerings in December, with Andover.net shares going for $18 on Dec. 8, 1999, and VA Linux Systems shares reaching $30 in an IPO on Dec. 9, 1999.
Under the agreement, approved by both boards of directors, each share of Andover.net common stock will be exchanged for 0.425 of a share of VA Linux Systems stock, reduced by $60 million in cash payments to shareholders of Andover.net.
The transaction is expected to be completed during VA Linux Systems' third fiscal quarter, which ends in April.
Channel company alliances also had an impact last week on Wall Street.
Shares of VerticalNet Inc. (VERT) and Internet Capital Group Inc. (ICGE) were up Thursday after the launching of a European joint venture with British Telecommunications PLC.
Internet Capital Group, Wayne, Pa., was up $18 to $130, a 16 percent increase, while its venture partner VerticalNet, Horsham, Pa., was up $6.69 to $239.69, a 3 percent climb.
As part of the joint venture, online trade communities will be created where European companies will be able to meet, seek and exchange information, ideas, products and services. The online sites will contain tailored editorial content including white papers written by key sector personalities, news updates, product information, classified advertisements and job listings.
VerticalNet will be the major shareholder in the joint venture, which is funded with $227 million in cash and assets from the three partners. The combined cash contribution of $107 million in financing is one of the largest ever raised for a business-to-business Internet company, according to Internet Capital Group. The venture, which will include the formation of VerticalNet Europe and VerticalNet UK Ltd., will be co-branded by VerticalNet and British Telecom.- CRN