STOCKS NEWS EUROPE-Autonomy gains, bid talk resurfaces

Shares in Autonomy AUTN.L gain 3.7 percent, topping the list of blue-chip gainers and reaching their highest in over a month, with traders citing press reports the software company could find itself at the centre of a takeover battle between Microsoft MSTF.O and Oracle (ORCL.O).

"If there were a bid forthcoming, it's more likely to be Oracle than Microsoft," says analyst Tintin Stormont at Singer Capital Markets. "But in terms of timing, the reasons for buying Autonomy now for Oracle held true last year and the year before that," she says.

There is some scepticism about whether the speculation holds water.

"The shares are undervalued and therefore it's always possible that an investor simply decides to buy a few and then everyone says there are bid rumours," says Tom Gidley-Kitchin, analyst at Charles Stanley.

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