Sybase Deal Hits Shares

Sybase Inc. shares tumbled nearly 19% as investors digested the potential impact of the software maker’s plan to acquire New Era of Networks Inc., which makes software for e-business. Sybase executives said the purchase would dilute earnings in upcoming quarters but would position the company as a top player among companies that make products to integrate the different software systems that businesses use to streamline their operations. Chief among investors’ worries was New Era’s dependence on IBM Corp. and how that relationship will fare as Sybase ups the ante against IBM, its old competitor in database software. Sybase shares fell $4.56, or 18.6%, to close at $19.94, and New Era’s stock closed up 38 cents at $7.31, both on Nasdaq.