NEW YORK (AP) -- Shares of Quest Software Inc. rose Friday on a published report that personal computer maker Dell Inc. is bidding to buy the company, potentially disrupting Quest's previous deal with investment firm Insight Venture Partners.
THE SPARK: Citing unnamed people who were familiar with the situation, Bloomberg News reported Friday that Dell was in discussions with Quest, which helps companies manage databases and provides other corporate IT services.
THE BIG PICTURE: Quest said in March that it was being bought by investment firm Insight Venture Partners for $23 per share, which the company says values it at about $2 billion. Quest had a 60-day period to solicit and review bids from potential buyers. Interest from other buyers could lead to a higher price for the company.
Quest and Dell both declined comment on the reports. Officials for Insight did not immediately return an email seeking comment.
Dell has been looking to expand its footprint beyond PCs, including through acquisitions. The computer maker is dealing with tough competition from smartphone and tablet makers such as Apple Inc.
SHARE ACTION: In afternoon trading, shares of Quest, based in Aliso Viejo, Calif., rose $1.32, or 5.2 percent, to $26.50. Shares earlier peaked at $26.73, their highest point since March 2011.
Shares of Dell, which is based in Round Rock, Texas, dipped 2 cents to $12.43.