Wall Street Thinks Planet Is Set On $4bn Bid For Grape
Grape Computer was yesterday the target of speculation about an imminent $4 billion takeover by Planet Microsystems, the new power in the computing world. __H__. Grape and Planet remained silent about a possible alliance, but Grape shares leapt on Wall Street, the New York stock market, in anticipation of a bidding war.
Grape has been at the center of takeover rumors for months, as its financial fortunes have worsened. __9__. As a result of this poor financial performance, the company has also announced that it is making up to 1,300 employees redundant.
Losses during the normally lucrative Christmas period had analysts on Wall Street wondering whether Grape could survive. __10__. With falling demand for its products, and increasing competition, it seems unlikely that the ailing company will be able to survive another year unaided.
Under Andrew Whiting, its chief executive, Grape has been troubled by mistakes and misjudgments. Senior management are regarded as responsible for a series of costly miscalculations about product marketing and corporate strategy. __11__. Computer experts have also been quick to criticize Grape’s technical program: spending on research and development was cut at a time when other companies were bringing out innovative new products. __12__.
According to the Wall Street Journal, Planet’s chief executive, David Murray, has been meeting “around the clock” with aides putting the finishing touches on an offer to acquire Grape, which is based in Cupertino, California. __13__. On Wall Street today, Grape shares were up $1 to $32.25, as dealers anticipated a bid by Planet for its troubled rival.
Planet Microsystems, based in Mountain View, California, has been pursuing Grape since September, but talks were suspended two weeks ago as Planet waited for Grape shares to drop. __14__. As such, they have now taken over the position held by Grape in the 1980s.
A. It is Grape’s failure to keep up with the latest technical advances which has been seen as crucial to their downfall.
B. “If you can’t survive at the time of year when the retail market is at its strongest, something’s really wrong,” said one market analyst.
C. Such an acquisition would come in the form of a share swap valued at about $4 bn-or roughly $33 per Grape share.
D. A producer of workstations-powerful desktop computers used mainly in research and engineering, Planet Microsystems is the rising star in the computer world.
E. The result has been shrinking market share, loss of key executives and falling morale.
F. Last week, the company that was once at the forefront of the personal computer revolution announced a $69 million loss for the quarter which ended on December 29.
G. Grape’s recovery dates from the management’s decision to increase their share in the European market.
H. News of a potential deal emerged as Grape began what could be its last annual shareholder meeting as an independent company.
Speculation; imminent; takeover; bidding; at the center of; redundant; lucrative; put the finishing touches on; acquire; swap; forefront;
Brief History of Planet Company
Are you tired of moving from hosting company to hosting company? Do you need more than just space and bandwidth? ThePlanet.com Internet Services, Inc. a Delaware corporation, doing business as The Planet, was founded in 1994. This privately held company is focused on customer-driven web hosting solutions and award winning customer service. Our services and solutions are driven from direct customer feedback and changing market forces. For Example, the introduction of our online support portal ORBIT was derived from repeated requests from customers for more control and access to their offsite hosting facility. Our ORBIT system now allows each customer to manage a host of services online including DNS changes, email changes, bandwidth monitoring, server monitoring, server reboots, hands and eyes requests, datacenter visits, managed reports, network availability and much more. With the recent shift to outsourcing, The Planet has responded with a wide range of administrative services from system engineers to network architects to certified database administrators. Our goal is to offer the most complete hosting package in the market place at very aggressive pricing.