PairGain Shares Up 10% on Rumors of MCI Deal

Shares of PairGain Technologies Inc. rose 10% Tuesday on a second wave of rumors that the Tustin company may announce a deal with MCI Worldcom Inc.

The stock closed at $13.13, up $1.19.

Market rumors have been swirling that PairGain would reveal a deal with MCI Worldcom at a digital subscriber line technology conference this week.

PairGain spokesman Steven Moore said he couldn’t confirm or deny that any MCI deal was in the offing.

PairGain has an exhibit at the Digital Subscriber Line Conference & Exhibition in Reston, Va. The company will participate in a panel discussion this morning.

Similar rumors drove the stock up 23% on Sept. 10. The stock then plunged after the market closed, when the company announced it would not meet third-quarter earnings expectations.

PairGain makes and markets digital telecommunications products that allow data to be transmitted at high speeds over existing telephone lines.