LAWSON CUSTOMERS

Analysts seek time with management to bolster their research and they'll also spend time with a company's customers. Scott Berg, an analyst for Minneapolis based Feltl and Co., attended Cue, Lawson Software's annual user conference in Boston last week, where he gained insight into consumer concerns over the software maker's possible acquisition.

In March, Infor Global Solutions offered $1.8 billion for Lawson. Other suitors could emerge. Berg found that a potential sale wasn't a significant concern to customers yet. But they expressed longer-term concerns about where Lawson products could be headed after a takeover.

Lawson shares recently traded at $12.45 per share, which is above Infor's initial offer of $11.25 per share. Berg has downgraded his Lawson recommendation to "hold," saying "the company's recent stock run no longer offers a favorable risk/reward opportunity given our view that a sale would likely be between $13-$14 per share."

Pentair is no stranger to growth via joint ventures and acquisitions. It's completed two joint ventures and nine acquisitions since 2004. Last week the water products maker announced a deal to buy Clean Process Technologies from Norit Holding BV for $705 million. The acquisition of the 100-year-old Dutch company is a strategic fit. Norit's ultra filtration technology will integrate well with Pentair's Water Group and offers further access to fast-growing foreign markets including China, Latin America and the Middle East.

Analysts are bullish on the deal. Citigroup Analyst Dean Dray moved from "hold" to "buy" and Wedbush Securities analyst David Rose moved from "neutral" to "outperform." Pentair now has 6 buy recommendations and 10 holds.

Janney Capital Markets analyst James Lucas reiterated his "buy" rating. Lucas wrote in his research note, "Pentair has greatly strengthened its management team since its last major acquisition in 2004 and CPT fits well with all of Pentair's acquisitions criteria."