UPDATE 1-Logitech shares surge on talk of Microsoft bid
ZURICH Jan 10 (Reuters) - Shares in Swiss-based computer peripherals maker Logitech International SA LOGN.VX rose over 12 percent on Thursday amid speculation Microsoft Corp (MSFT.O) would launch a takeover bid, traders said.
A spokesman for Logitech, the world's largest maker of computer mice, was not immediately reachable for comment.
Logitech shares were up over 12 percent to 39.46 francs by 0900 GMT before paring gains to trade up 9 percent.
Traders said rumours were circulating that Logitech, which has a market capitalisation of around 7 billion Swiss francs
($6.3 billion), would receive a takeover bid at 48 francs per share from Microsoft.
A bid at 48 francs would represent a premium of 38 percent to Wednesday's closing price of 34.80 francs.
The entry of Microsoft, the world's largest software company and one of the world's largest makers of peripherals, into the webcam market has dented sales at Logitech, whose products also include remote controls, audio products and keyboards.
"Supposedly, Microsoft is supposed to be taking over Logitech, offering 48 francs a share. Then the mouse-maker would be worth around 10 billion francs," said one trader.
Other market participants, however, played down the possibility of a bid.
"Today's share price rise is probably more related to a rebound in the market than any rumours," said Michael Foeth, analyst at bank Vontobel, which rates Logitech a "buy". "Logitech has lost almost 20 percent since the start of the year," said another Zurich trader. "Now they're covering shorts. The rumours are just a bunch of talk."
Logitech reports its fiscal third-quarter results on Jan. 17.
(Reporting by Thomas Atkins, Peter Maushagen, Rupert Pretterklieber and Katie Reid; Editing by David Holmes)
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