PictureTel Corp. (Nasdaq: PCTL) gained 39 percent Thursday after the maker of video conferencing products said it would provide International Business Machines (NYSE: IBM) with a pan-Europe, Middle East and Africa videoconferencing service.
The news, announced after Wednesday's bell, sent PictureTel shares up 4 to 14 3/8 on Thursday morning. The stock has recovered since a deep dip after it warned of a second-quarter loss last July. IBM shares fell 1 13/16 to 104 7/16.
PictureTel will provide multilingual support for all of IBM's multipoint videoconferences, including remote call-launching, a `video operator and optional live assist video support.
Financial details of the deal were not released.
Reuters contributed to this report.