Rumors Help Boost Stock of PairGain

PairGain Technologies stock moved up Thursday in heavy trading as takeover rumors swept through the telecommunications industry again.

The Costa Mesa provider of telecommunications equipment was one of several companies on the move amid speculation that they might be takeover targets for network equipment maker Cisco Systems. Analysts said Lucent Technologies Inc.’s agreement this week to buy Ascend Communications, the No. 4 network-equipment maker, could prompt Cisco to beef up its product lines through acquisitions and partnerships.

Cisco officials said Thursday they are wary of big deals such as the proposed Lucent-Ascend combination, but that they will stick with their strategy of acquiring technology and people from much smaller companies.

PairGain’s stock climbed 11%, or $1 a share, to $10.13 on volume of 8 million shares, more than double the daily average over the last three months. The stock was one of the most actively traded issues in U.S. markets.

The company has been the subject of repeated takeover rumors since June. Last month, it approved a “poison pill” plan designed to thwart any hostile takeover bid.