Hewlett-Packard $43 Bid For Rackspace Quashed By Anonymous Denials

Rackspace Hosting Inc.

was sharply lower on a report that a rumored $43 a share bid by Hewlett-Packard Co.

is inaccurate. A Web site launched recently by Walt Mossberg, Kara Swisher, former tech columnists of the Wall Street Journal, obtained denials of the deal from Hewlett-Packard. The item was tucked near the bottom of an item concerning a personnel change at Hewlett. "Multiple sources familiar with HP's plans categorically denied that HP made an offer for Rackspace," the report said. Rackspace in May hired Morgan Stanley to evaluate "multiple strategic proposals" it said had arrived from outside companies. Rackspace was down 2.5 perent recently at $33.73 a share.