Adaptec Inc, its shares low following its failed $775m bid for Symbios Inc (CI No 3,442), is beginning to look like a bargain. Market rumors circulating widely yesterday named both Intel Corp and 3Com Corp as possible buyers of the troubled I/O interface chip controller and board manufacturer, whose shares have dropped 80% in value since last October. Earlier this month the company lost its chief executive officer, Grant Saviers, and announced dismal first quarter figures showing losses of $77.3m and revenues down 33% to $181m. The second quarter is unlikely to be any better. The company has cut 600 jobs, 10% of its workforce this year, and set out on a re-structuring plan it hopes will put it back on track.
