Quest Software (QSFT) is in a state of suspended animation - lots of murky questions surrounding what is fundamentally a very healthy business with 20%+ EBITDA margins. There has been wide-spread speculation that QSFT could be a takeover target with a take out value of between $16 to $19. In our view, QSFT's short term stock trajectory is flat to down until there is a report from the board investigation into the stock option granting practices. Once the extent of the accounting damage, if any, is understood, we would expect a number of companies to show serious interest in QSFT, even if the investigation does not lead to any adverse results. Our list of potential QSFT strategic suitors includes EMC, BMC Software, Symantec, CA, Oracle, HP and IBM as well as a number of private equity firms such as Silver Lake, Golden Gate Capital and Vista Equity. The financial buyers would be drawn to QSFT's strong franchise and profitability. The MGI view is that a mid-size private equity firm or BMC Software or EMC are the best positioned candidates to win the prize and acquire QSFT. Before the trophy is awarded, however, more fireworks will happen and the smoke needs to clear.