SalesForce Surges on Takeover Speculation

SalesForce.com, Inc. (CRM) shares and options soared higher Thursday amid renewed takeover chatter, according to FlyOnTheWall. Call option volume hit 4,251 mid-day compared to put volume of 338 contracts in mid-day trading. Meanwhile, CRM’s October implied volatility of 68 is well above its 26-week average of 56, which suggests non-directional price movement.

The business software subscription company has experienced a lot of positive press during the past month with its software named a CRM Market AWard Winner by CRM Magazine and its chief executive Marc Benioff named CEO of the Year by CRO Magazine. Wall Street has also awarded the company with a place on the S&P 500 index in a move that excited shareholders.

Rumors of a SalesForce.com takeover aren’t anything new either. ZDNet’s Larry Dignan was one of the most recent contributors to the idea, suggesting the Dell Inc. (DELL) would prove to be a great suitor. The rationale is that the partnership appears to be much more of a strategic one than a customer-vendor partnership.

Dell has been relatively open to the software as a service paradigm as it tries to sell hardware, software and services in one package to business consumers. The computer manufacturer also acknowledged that there is a very large opportunity that helps customers lower cost in an easier-to-manage environment via SalesForce.com.

Currently, the takeover chatter is nothing more than speculation, but the talks continue to occasionally affect stock and option prices in a very real way. Shares of SalesForce.com are trading up 2.82% to $52.43.

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