TECH STOCKS: Data-storage Deal Leads Tech Action

By Rex Crum, MarketWatch

SAN FRANCISCO (MarketWatch) -- Tech stocks showed strength in afternoon action Thursday, but some data-storage companies were in the red after Dell Inc. unveiled a lowball deal to acquire Compellent Technologies Inc.

Compellent (CML) fell $4.62 a share, or 13.7% to $29.04 after the company said it was in "advanced discussions" about Dell acquiring Compellent for $27.50 a share.

Compellent's shares have risen more than 70% over the past three months on speculation that the company could be a takeover target after Dell lost a bidding war with Hewlett-Packard Co. (HPQ) to acquire 3Par Inc. over the summer.

CommVault Systems Inc. (CVLT), which has also been viewed as a possible data-storage takeover target, fell 81 cents a share to close at $30.32.

Networking-equipment maker Ciena Corp. (CIEND) rose $2.44 a share, or more than 15%, to close at $18.36 after the company gave a mixed fourth-quarter earnings report, but said it expects its first-quarter sales to surpass analysts' forecasts.

Chinese Internet video-streaming company Youku.com Inc. (YOKU) climbed another $9.26, or more than 27%, to close at $42.70 one day after soaring 161% in its initial public offering.

E-Commerce China Dangdang Inc.(DANG), which rose almost 90% in its IPO Wednesday, added another $2.31 a share, or almost 8%, to end the day at $32.22.

U.S. shares of Dutch chip-equipment maker ASML Holding (ASMLD) rose $2.57 a share, or more than 7%, to close at $37.74 after the company forecast fourth-quarter bookings of $2.66 billion and said it expects demand to improve in most of its semiconductor market segments.

Among other tech stocks, declines came from Microsoft Corp. (MSFT), Hewlett-Packard Co. (HPQ) , Apple Inc. (AAPL) and Intel Corp. (INTC)

(INTC)(INTC)The Nasdaq Composite Index (RIXF) rose 7.5 points to 2,616, and the Philadelphia Semiconductor Index (SOX) was up slightly.