UPDATE 2-Fortinet denies report of buyout talks with IBM

* Says focused on building strong, independent company

* Bloomberg reported Morgan Stanley advising Fortinet

* Fortinet shares up 6.27 pct despite denial
(Adds share move, background on security software industry)

NEW YORK, Nov 1 (BestGrowthStock) – Network security company
Fortinet Inc (FTNT.O: ) denied a news report it was in talks to
be bought by International Business Machines Corp (IBM.N: ).

Bloomberg reported on Friday, citing unnamed sources, that
IBM was in advanced talks to buy Fortinet and that Morgan
Stanley (MS.N: ) was advising Fortinet.

Fortinet said on Monday that “investors need to be aware of
the error,” adding it was focused on building a strong and
independent company. It also asked Bloomberg to retract or
correct the report, the company said. IBM declined to comment.

Fortinet shares closed up 6.27 percent at $31.88, despite
the denial, showing investors believed the company was still an
attractive acquisition target. Earlier, they rose as high as
$36.77.

Bankers and analysts have said there are likely to be more
acquisitions in the security industry, with large technology
vendors eager to add security software to their product
lineup.

Intel Corp (INTC.O: ) paved the way in August with a $7.7
billion deal to buy U.S. security software company McAfee Inc
(MFE.N: ), while a month later, Hewlett-Packard Co (HPQ.N: ) agreed
to buy cyber-security vendor ArcSight Inc (ARST.DE: ) for $1.5
billion.
(Reporting by Ritsuko Ando; editing by Richard Chang and
Andre Grenon)

UPDATE 2-Fortinet denies report of buyout talks with IBM