Logitech denies rumours of Microsoft buy-out

Bid would be "without sense"

10 March 2008 11:04 GMT / By Katie Scott

Logitech has categorically denied rumours that it is to be bought out by Microsoft.

In January, news websites around the world reported that Microsoft was about to make an offer for the computer accessories manufacturer.

But now, Logitech has said that any move of this sort would be "an operation without sense".

In an interview with an Italian newspaper, the Swiss company's chairman, Guerrino De Luca, acknowledged that shares in Logitech had risen in January upon speculation of a take-over bid - but said it was just that - speculation.

"[Shares] only rose for a day. Anyhow it would be an operation without sense", he told Corriere della Sera.

"I reiterate, without competition Logitech would lose the great pressure to innovate. Moreover there would be problems from antitrust authorities seeing as the two companies together would have a virtual global monopoly in mice and keyboards."

Logitech is the market leader in PC mice, while Microsoft is its biggest competitor with "30% of our market", De Luca added.

At the time, analysts were quick to quash rumours as Logitech board member Daniel Borel, the company's largest shareholder, said he had no reason to sell his stake, which would make a takeover bid nigh on impossible.

De Luca concluded by pointing out that Logitech and Microsoft continue to be competitors, although the Melinda and Bill Gates Foundation has bought a "small Stake" in his company.