Trend Micro jumps on report of takeover proposals-UPDATE 1

Trade the News

Thursday September 09, 2010 09:05:02 AM GMT

* It regularly receives takeover proposals-paper citing CEO

* Would consider actual offers -paper citing CEO

* Prefers remain independent -paper citing CEO

* Possibility that Trend Micro would be taken over-analyst

* Shares up 16.3 pct, valuing the company at $4.5 bln

TOKYO, Sept 9 (Reuters) - Shares of Japan's Trend Micro jumped as much as 21 percent on Thursday after a Taiwanese newspaper said the anti-virus computer software developer had received takeover proposals, citing its CEO.

Investors have speculated Trend Micro may be a takeover target after chipmaker Intel said last month it would buy anti-virus software maker McAfee in a $7.7 billion deal seen sparking industry consolidation.

Taipei industry newspaper DigiTimes cited chief executive Eva Chen as saying Trend Micro regularly receives takeover proposals and would consider any actual offers, although it prefers independence.

A spokeswoman for Trend Micro said the company was checking on the report and had no immediate comment.

"There is a possibility that it (Trend Micro) will be taken over," said Deutsche Securities analyst Satoru Kikuchi. "I don't think business is going all that well, and they are probably not as confident as they were 10 years ago. So, if they get a good offer, they may sell."

Kikuchi, however, added he could not think of any obvious candidates as buyers.

"Intel's purchase of McAfee was not seen in the industry as reasonable. It was too expensive. They didn't have any special technology and neither do Trend Micro. With viruses, it's simply a question of tackling them one by one, so there is no real need to buy this company," Kikuchi said.

The DigiTimes article did not mention any specific offers. It cited Chen as saying she believes Trend Micro is worth more than McAfee.

Trend Micro shares were up 16.3 percent at 2,717 yen at the end of morning trade in Tokyo, valuing the company at $4.5 billion. The stock earlier soared more than 21 percent, or by its daily limit of 500 yen, to a four-month intraday high of 2,836 yen. (Reporting by Sachi Izumi, Isabel Reynolds and James Topham; Editing by Nathan Layne)

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