Ariba up as bargain hunters drive stock up

Friday, Jan. 3, 2003 | 2:08 a.m.

Outpointing this story, which you may move for state lines- Biz

NEW YORK (Dow Jones/AP) - Shares of Ariba Inc. rebounded sharply Thursday, after losing ground earlier this week on news that the software company would restate some results. Analysts suggested that bargain-hunters were driving the stock up.

Ariba shares closed Thursday afternoon at $3.03, up 55 cents, or 22 percent, on the Nasdaq Stock Market.

Sunnyvale, Calif.-based Ariba Tuesday announced it would restate its fiscal 2001 results to reflect a change in the accounting treatment of a $10 million transaction made between two officers of the company. Ariba shares fell 4.6 percent Tuesday.

Most analysts, though, considered the news Tuesday a "nonevent," given that the transaction was so long ago and amounted to a relatively small amount.

"Most investors, while concerned, realize it's not an issue of operations," RBC Capital Markets analyst Cameron Steele said. "There was a bit of an overreaction Tuesday."

The sell-off, analysts said, allowed investors who were already interested in the company or just more optimistic with the start of the new year an opportunity to buy the stock cheap.

RBC Capital has no investment banking relationship with the company but served as an underwriter in its initial public offering in 1999.