M&A dominated headlines on Monday again with the Street digesting the latest big tech takeover.
This time, IBM inked a deal to buy data analytics company Netezza for $27 per share, almost a 10% premium from Friday's closing price of $24.60.
In the wake of the news, rivals CommVault and Teradata traded at or near 52-week highs.
Considering the bidding war that erupted recently over 3PAR , what’s the tech trade, now?
Instant Insights with the Fast Money traders
As far as I’m concerned the question becomes, ‘what does Dell do now,” muses Joe Terranova. (Remember, Dell lost the bidding war for 3PAR to HP .)
The fact that Netezza is trading above $27 suggests at least some investors believe there could be another buyer. Cisco, HP, and now IBM have all made major purchases. I’d think Dell has to come out and do something.
Roth Capital analyst Nathan Schneiderman says there could be higher bids for Netazza - potentially from Hewlett Packard, despite the company's other acquisitions, reminds host Melissa Lee.
If you’re looking for a trade, long-term I still like HP, says Patty Edwards, however if they step in and bid for Netazza, I’d be concerned about what that does to share price in the short-term.