* Savvis has not retained a bank, despite consolidation
* Seeking a financial partner for certain businesses
* Expansion expected with Asian partner in 1Q
* Shrs of Savvis, peers Rackspace Hosting, Equinix rise
(Adds share movement of peers, closing share price, byline)
By Nadia Damouni
NEW YORK, Jan 28 Information technology
services provider Savvis Inc SVVS.O is not actively shopping
itself despite escalating consolidation within the network
industry, company Chairman and CEO Jim Ousley told Reuters.
Shares of Savvis rose almost 14 percent on Friday after
speculation that it could be the next takeover target a day
after Verizon Communications' (VZ.N) said it planned to buy
rival Terremark Worldwide Inc TMRK.O for $1.4 billion.
"We talk to a lot of different bankers, but we do not have
one on retainer today. I guess if that sends a signal that we
are not out trying to sell ourselves, that is as good a signal
there is," Ousley said.
The Savvis executive said he was not surprised by the
merger announcement between Verizon and Terremark, which
already shared a partnership.
Terremark deals with IT outsourcing, and helps companies
adopt cloud computing -- an increasingly popular technology
that allows remote access to computing power and data over the
Other data center services companies saw their shares soar
on Friday, including Rackspace Hosting RAX.N, which closed
4.8 percent higher at $33.77. and Equinix Inc (EQIX.O), which
was up 1.3 percent at $88.82 per share. Analysts singled out
data hosting firms Savvis and Rackspace as among potential
Shares of Terremark jumped 35 percent to $18.98 -- their
highest in a decade -- after Verizon's offer, which represented
a 35 percent premium over Terremark's Thursday close.
"Telcos have been focused the last three or four years on
consumers and cell phones and cell build out. That has kind of
peaked," said Ousley.
Despite being in constant dialogue with Verizon, which is
one of several large vendors providing network bandwidth to
Savvis, Ousley said he had not received any indication that the
telecom giant wanted to buy a cloud company.
Still, Ousley said Savvis could seek a partnership to help
finance some of the company's more capital intensive business.
Savvis has existing relationships with telecom providers
including Verizon, AT&T Inc (T.N) and Level 3 Communications
Inc LVLT.O, and is in discussions with all the "major ones
all the time," said Ousley.
Savvis is also expected to announce in the first quarter a
partnership with a potential network provider in India or China
to increase Savvis's presence in the region, Ousley said. He
declined to provide specific details.
Savvis shares rose $3/69, or 13.9 percent, to end at $30.26
on the Nasdaq on Friday.
(Reporting by Nadia Damouni and Saqib Iqbal Ahmed; Editing by