Linux-Related Be Soars on Takeover Rumor

Red Hat to the rescue?

Shares of computer operating systems software maker Be Inc., which went public at $6 in July but languished as low as $3.81 this fall, soared 49% on Thursday on speculation it might be acquired by Linux specialist Red Hat Inc. Be shares (ticker symbol: BEOS) rose $12.31 to close at $37.56 on Nasdaq.

Be’s software would add digital applications that Red Hat’s software doesn’t offer, said Charles Payne, head analyst at Wall Street Strategies, a subscription investment advisory service.

Be wasn’t available to comment. Durham, N.C.-based Red Hat declined to comment.

Shares of companies associated with the free Linux software have surged on optimism that it might prove to be an attractive alternative to Microsoft Corp.’s dominant Windows software. Red Hat distributes a commercial version of Linux and charges for additional services and technical support.

Be, based in Menlo Park, Calif., has climbed almost ninefold since a judge ruled that Microsoft had a monopoly on operating systems.

Shares of Red Hat (RHAT) rose $2.75 to $245.75 and are up more than seventeenfold since the company first sold stock in August.

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Be Inc. Is A-Buzz

Shares of Be Inc., which debuted on July 20 at $6 a share, have exploded on speculation of a possible takeover by Red Hat Inc. Weekly closes and latest on Nasdaq:

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Thursday: $37.56

Up: $12.31

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Source: Bloomberg News