Firm says Fusion-io could be acquired for $22-$27 per share
Flash memory product developer Fusion-io (FIO) is rallying after research firm Pacific Crest wrote that the company could be acquired for $22-$27 per share. The company's stock was trading just shy of $14 in early trading today. WHAT'S NEW: Based on the prices paid for two flash memory companies in recent acquisitions, Fusion-io would be worth $22-$27 per share in a takeover deal, Pacific Crest wrote in a note to investors. The firm added that it was becoming more upbeat on Fusion-io's outlook, partly due to the possibility that it will be acquired. But the company's stock could also be boosted by the launch of new data centers by Facebook (FB) and Apple (AAPL) next year, the firm stated. Fuion-io's shares could potentially reach $22-$27 based on an increase in the stock's multiple, Pacific Crest predicted.
STX do not have much of an option other than going behind FIO. Likes to see bidding war . Any day FIO will be bought. When WDC is in acquiring mood , I do not see STX sitting quiet. Hopefully this Monday is the day.