Trading in Extreme Networks Inc. and Viasource Communications Inc. was halted for about two hours Monday after a fake news release saying Extreme offered to buy Viasource was published on the Internet.
The message was posted to Yahoo Inc.'s Viasource bulletin board by an anonymous user. The phony release was made up to look as if it came from PR Newswire and was dated Oct. 9.
Yahoo deleted the message after being contacted by PR Newswire, which distributes news releases.
The six-sentence release said Extreme, a maker of computer-network switches, "announced today a cash tender offer" for Viasource at 92 cents a share. The release didn't quote any officials.
"It is completely false," said Valerie Bellofatto, a spokeswoman for Santa Clara, Calif.-based Extreme.
Shares of Viasource, which installs and maintains wiring and equipment for cable-television and telecommunications companies, rose as high as 22 cents on Nasdaq before the halt at 11:28 a.m. EDT.