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Why Juniper Networks Shares Soared

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What: Shares of Juniper Networks (NYSE: JNPR  ) soared today by as much as 11% on reports that the company had hired JPMorgan Chase (NYSE: JPM  ) to help evaluate possible buyout bids.

So what: Benzinga questionably reported that a bid in the high $20's was on the table, and storage specialist EMC (NYSE: EMC  ) was a potential suitor. It was highly dubious from the get-go, considering the implied size of the deal. Juniper currently trades with nearly a $9 billion market cap before any premium.

Now what: With EMC CEO Joe Tucci's upcoming retirement, it wouldn't make much sense for him to pursue such a large and risky acquisition (it would have been EMC's biggest ever), because he's on his expected way out the door within a matter of years. Additionally, Juniper doesn't have much exposure to data centers, further questioning the synergies it could have with EMC. Neither company officially commented, but a source told Reuters that the report was bogus.

Interested in more info on Juniper Networks? Add it to your watchlist by clicking here.

 
 

Evan Niu, CFA has no positions in the stocks mentioned above. The Motley Fool owns shares of EMC and JPMorgan Chase & Co. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.


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Evan Niu
TMFNewCow

Evan is a Senior Technology Specialist at The Motley Fool. He was previously a Senior Trading Specialist at a major discount broker. Evan graduated from the University of Texas at Austin, and is a CFA charterholder.

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8/28/2015 1:10 PM
EMC $24.96 Down -0.07 -0.26%
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