TECH STOCKS: Dell's Talks With Compellent Highlight Tech Action

By Rex Crum, MarketWatch

SAN FRANCISCO (MarketWatch) -- Tech stocks mostly rose Thursday, but it was talk about a possible acquisition by Dell Inc. that gained attention as trading progressed.

Technologies Inc. (CML) said they were in "advanced discussions" about Dell acquiring Compellent for $27.50 a share.

However, Compellent's shares fell by $4.43, or 13%, to $29.24, meaning Dell's offer would be at a discount from where Compellent's shares have traded of late. Compellent has been said to be a possible takeover target after Dell lost out in a bidding war with Hewlett-Packard Co. (HPQ) to acquire 3Par Inc. during the summer.

CommVault Systems Inc. (CVLT), which has also been seen as a possible data-storage takeover target, fell by $1.46 a share, or 4.7%, to $29.67.

Networking-equipment maker Ciena Corp. (CIEND) rose $1.94 a share, or 12%, to $17.84 after the company gave a mixed fourth-quarter earnings report, but said it expects its first-quarter sales to be higher than Wall Street analysts' forecasts.

Chinese Internet video-streaming company Youku.com Inc. (YOKU) climbed another $4.84 a share, or 14%, to $38.27, one day after its IPO in which its shares soared 161%.

U.S. shares of Dutch chip-equipment maker ASML Holding (ASMLD) rose $2.28 a share, or 6.7%, to $37.51 after the company forecast fourth-quarter bookings of $2.66 billion and said its expects demand to improve in most of its semiconductor market segments.

Among other tech stocks, gains came from Oracle Corp. (ORCL), Hewlett-Packard Co. (HPQ), Google Inc. (GOOG), Cisco Systems Inc. (CSCO) and Intel Corp. (INTC)

(INTC)(INTC)The Nasdaq Composite Index (RIXF) rose almost 8 points to 2,616 and the Philadelphia Semiconductor Index (SOX) was up slightly.