Microsoft to acquire Logitech? Doubtful

Shares in Logitech rose by 12 per cent yesterday on rumors that Microsoft was getting ready to launch a takeover bid.  Personally, I find this highly unlikely.

Microsoft has a pretty extensive line-up of hardware at present, but Logitech has a far more diverse line up, ranging from Harmony remote controls to gaming accessories to the ingenious Squeezebox media player.  Some of this line up would be of interest to Microsoft, bit others (such as the Squeezebox) would be direct competition to existing products.  Microsoft has established itself as a hardware brand both on the desktop (keyboards, mice and webcams) and in gaming and getting involved with Logitech would dilute the brand.

If Microsoft did take control of Logitech (and that's a very, very big if) I think we'd see the range of products collapse down and a much tighter tie between Windows and Logitech hardware.

The other thing that makes the deal unlikely is the scale of the deal - between $6 to $8 billion.  This would be Microsoft's biggest deal to date.  I just don't see Microsoft being that motivated to make such a deal. 

Thoughts?