Rackspace falls on negative M&A report


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

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Comments (3)
  • bones2180
    , contributor
    Comments (108) | Send Message
     
    Intersting to see this Deal Reporter rag put this story out on a quiet friday, where none of the analysts or company's can comment.
    Amazing to see how some hedgies will go to great lenghts as they short stocks.
    27 Jun 2014, 02:13 PM Reply Like
  • defunkdreader
    , contributor
    Comments (183) | Send Message
     
    cRAX in the story.
    27 Jun 2014, 02:32 PM Reply Like
  • Siwanoy
    , contributor
    Comments (717) | Send Message
     
    That fine. I would be quite unhappy to be forced to sell in a buyout. The company is well positioned and very well run. The issue is the economic downturn and it's effect on enterprise cloud adoption. About 35% of enterprise IT is on the cloud now but that should more than double if there is any discretionary capital available at all.
    27 Jun 2014, 07:56 PM Reply Like
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