Sun and Rackable?

It’s Friday, it’s sunny and 81 degrees here at Studio H, and reader/contributor Chris Aycock is passing on just the rumor I need to round out my week:

Rackable Systems’  shares shot up Thursday as the server maker became the latest company to get swept up in a frenzy of speculation about acquisitions in the tech sector.

“There’s a rumor around — strictly a rumor — that Sun is going to buy them,” says Chirag Vasavada, a hardware analyst with T. Rowe Price. Rackable has been a subject of buyout rumors in the past, although Dell has usually been the rumored acquirer, notes Vasavada.

Why? Well, M$oft and Yahoo! accounted for 34% and 26% of Rackable’s 2006 $360M in sales. And Sun is trying to get in good with Internet companies, too.

Sun declines to confirm or deny; Rackable’s shares were up from $16.50 to around $18 this week (5 day view).


 

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