Rackspace falls on negative M&A report

|About: Rackspace Hosting, Inc. (RAX)|By:, SA News Editor

Sources tell dealReporter Rackspace (RAX -4.3%) is failing to draw interest from strategic suitors as it continues evaluating its options.

Shares have sold off on the report after spending most of the day up slightly. They flew higher last month thanks to a report stating Rackspace had hired Morgan Stanley to evaluate "inbound strategic proposals" and other options.

Previous: Citi calls CenturyLink "a good fit" for Rackspace