Does Data General Need A Partner?

Data General (DGN), which skidded to 7 on Aug. 31--down from 17 in early June--is back on the radar screens of investors who play the takeover game. They are betting that Data General, which has risen to 13, is being pursued by the likes of Storage Technology or Sun Microsystems. What is the logic behind this reasoning? They figure Data General is a compelling buy both on fundamentals and as takeover bait.

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