AUTOMOTIVE

Shares of Cognos, which makes business intelligence and other enterprise software, rose 2.17 percent, or 55 cents, to close at $25.95 on the Nasdaq market on Tuesday. On the Toronto Stock Exchange, they rose 66 Canadian cents to close at C$29.55. Takeout prices for Cognos could come at a premium of between 38 and 57 percent to current valuation, the report states. However, Cognos is tied up in a U.S. Securities and Exchange Commission accounting review and Abramsky writes that any takeover would have to wait until the matter is resolved. Cognos has delayed filing its financials as a result of the SEC review and its stock price has sagged of late. Existing ties between the two companies, as well as IBM's recently increased focus on the business intelligence and information management segments, are among the reasons for a potential deal, Abramsky wrote. In the U.S. options market, investors have been steadily bidding up Cognos options and, as a result, pushing up their volatility, bracing for possible stock movement. "Speculation of IBM's interest in the company, earnings and less demand for software and services may be contributing to the higher volatility and investors' interest in (Cognos) options," said Paul Foster, strategist at financial information Web site theflyonthewall.com. A Cognos spokeswoman was not immediately available. ($1=$1.14 Canadian)