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By ZURICH, Jan 10 (Reuters) - Shares in Swiss-based computer peripherals maker Logitech International SA rose over 12 percent on Thursday amid speculation Microsoft Corp would launch a takeover bid, traders said.
Spokesmen for Logitech, the world's largest maker of computer mice, and Microsoft were not immediately reachable for comment.
A Logitech takeover would transform Microsoft, the world's largest software firm, into the world's largest maker of computer mice and other peripheral devices and deepen its push into hardware.
Traders said rumours were circulating that Logitech, which has a market capitalisation of around 7 billion Swiss francs ($6.3 billion), would receive a takeover bid at 48 francs per share from Microsoft.
A bid at 48 francs would represent a premium of 38 percent to Wednesday's closing price of 34.80 francs and value the firm at 9.16 billion francs.
Logitech shares were up over 12 percent to 39.46 francs by 0900 GMT before paring gains to trade up 7.7 percent.
Logitech is market share leader in PC mice, a market it has shared over the years with Microsoft which so far has showed little interest in using its monopoly power to dominate a hardware segment such as this.
But Microsoft has established a large market for hardware with its Xbox entertainment console and Logitech's accessories would dovetail with this new segment.
Logitech's also manufactures a wide range of computer accessories, including Webcams, speakers and keyboards.
The entry of Microsoft into the webcam market has dented sales at Logitech, whose products also include remote controls and audio products.
On Tuesday, Microsoft bid $1.2 billion to buy Norwegian business search software company Fast Search & Transfer , the second-largest search provider that lets companies comb internal documents, data and other information.
"Supposedly, Microsoft is supposed to be taking over Logitech, offering 48 francs a share. Then the mouse-maker would be worth around 10 billion francs," said one trader.
Other market participants, however, played down the possibility of a bid.
"Today's share price rise is probably more related to a rebound in the market than any rumours," said Michael Foeth, analyst at bank Vontobel, which rates Logitech a 'buy'.
"Logitech has lost almost 20 percent since the start of the year," said another Zurich trader. "Now they're covering shorts. The rumours are just a bunch of talk."
With a price-earnings ratio of 18.8 on forecast 2008 earnings, Logitech is already one of the most expensive firms inthe Down Jones index of European tech shares.
Logitech reports its fiscal third-quarter results on Jan. 17.
(Additional reporting by Peter Maushagen, Rupert Pretterklieber and Katie Reid in Zurich and Eric Auchard in Las Vegas; Editing by David Holmes and David Cowell)
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