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VMEM: Violin Memory Jumps Higher on Continued Buyout Buzz

It ousted its CEO and founder in December as its stock sank


ViolinMemory1Sources tell The Deal that troubled flash-memory developer Violin Memory (VMEM) has been talking with potential suitors. The report sent VMEM share surging more than 8% in Tuesday mid-day trading.

At least one of the companies that has spoken to VMEM has prepared a preliminary term sheet for a possible takeover, though the terms remain adjustable based on the results of future due diligence. According to the report, VMEM has been approached by a wide variety of tech companies, including Seagate (STX), IBM (IBM), Hewlett-Packard (HPQ), EMC (EMC) and Samsung.

STX Stock – Seagate Technology Shares Slump on Poor Earnings
STX Stock – Seagate Technology Shares Slump on Poor Earnings

VMEM held its IPO in September, but shares dropped the first day and tumbled in the following months, ultimately leading to the ouster of CEO and founder Donald Basile in December.

Last month, VMEM announced that it had tapped a permanent successor to Basile.

VMEM stock has dropped more than 47% since its IPO. On Monday, VMEM stock closed at $3.70 a share.

Article printed from InvestorPlace Media,

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