AST Denies Report of Merger Talks With Wyse : President Says Irvine Firm Has No Interest in Acquisitions or Being Acquired

AST Research, an Irvine computer manufacturer, on Thursday denied published reports that it is engaged in merger talks with San Jose-based Wyse Technology.

In a prepared statement, AST President Safi U. Qureshey said the company has no immediate interest in either acquiring or being acquired by another firm.

“We’re not entertaining or looking for any sort of acquisition,” Qureshey said in an interview. He added that AST “has not had any discussions with any company” about a merger or acquisition.

In its statement, the company said it is “very strongly positioned with new products and improved profits for the long-term” and has “no interest in being acquired.”

Qureshey is one of three AST co-founders, who together control more than 50% of the company’s stock. AST shares, which sold in the low 30s in 1986, have recently traded around 9. The lower stock price would make AST a more attractive target for acquisition.

AST closed Thursday at $9.25 per share, up 75 cents, in over-the-counter trading.

Earlier this month, PC Week, an industry trade publication, and the San Jose Mercury News reported that a merger between AST and Wyse might be in the works.

The Mercury News report, quoting unidentified sources, said Wyse had approached AST about a merger. The report noted that Wyse has $100 million in cash and quoted a Wyse spokesman as saying the firm is “talking to a lot of companies all the time about mergers.”

But Margaret Reilly, Wyse’s assistant treasurer, said Thursday that the two fast-growing personal computer makers have not discussed a merger or acquisition.

AST decided to comment on the reports because, Qureshey said, “the rumors have been strong enough that we wanted to put the issue to bed.”

An AST official was quoted in the Jan. 6 Mercury News story as denying any merger discussions with Wyse.

Wyse is a leading manufacturer of personal computers, terminals and monitors.