Rackspace soars on going-private report

|By:, SA News Editor

Rackspace (RAX) is in talks with a P-E firm about a deal to take the company private, reports TechCrunch, with an eye towards maybe making an official announcement this week.

"The pressures of being a public company are too much," says one source, and the idea of going private "has gained sufficient traction" in the boardroom.

The going-private leak comes amid at least three acquisition bids, says TC, including one from H-P (HPQ) for up to $43 per share.

RAX +9.6% to $37 premarket

Previously: Rackspace falls on negative M&A report