Rumor: Mercury attracting multiple suitors

One of the consolidation rumors floating around Silicon Valley is the pursuit of Mercury Interactive, with EMC and HP supposedly bidding for the leader in BTO (business technology optimization). With a current market cap above $3 billion, Mercury could go for close to $4 billion. Mercury, which is in the midst of cleaning up from a stock option back dating issue, would be a good fit for both companies. Oracle may also be taking a gander at Mercury. Or how about this--EMC buys Mercury, then the newly invigorated HP buys EMC. At this point the various parties aren't talking or leaking. It could be just Valley talk, but perhaps not...