Microsoft buying Logitech?

Rumours surface sending shares soaring

10 January 2008 14:43 GMT / By Stuart Miles

Microsoft is rumoured to be buying peripherals maker Logitech forcing shares to surge in value on Thursday.

According to Reuters, traders said rumours circulated that Logitech, which has a market capitalization of around 7 billion Swiss francs (£3 billion), would receive a takeover bid at 48 francs per share from Microsoft.

"Rumors are rumors. I can't make any specific comment on them", Daniel Borel, co-founder, and the company's largest shareholder, told Reuters.

The move would make Logitech the largest manufacturer of computer mice and keyboards.

The Redmond based company could be using the bid to capture the company's remote control and webcam divisions rather than the keyboard or mice departments.

Microsoft could use, Logitech, who bought Harmony Remote's parent company in 2004 for $29 million in cash, to add greater home control within a home media landscape to it current portfolio of media extenders and the Xbox 360 console.

Likewise Microsoft could use the company's webcam brand and technical know how to further enhance its instant messaging services beyond its current offering.

Logitech recently launched a series of new products at the Consumer Electronics Show in Las Vegas.

Logitech and Microsoft have declined to comment on the story following Pocket-lint's requests for a quote.