GERMANY’S Software will not buy loss-making Irish software maker Iona Technologies, Software’s chief financial officer Arnd Zinnhardt told Reuters yesterday.

IONA TECHNOLOGIES rose as much as 12% in New York trading after a report that Software AG may make a bid valuing the Dublin-based company at more than $4 per American depositary receipt.

IONA TECHNOLOGIES PLC, the Irish maker of software that allows companies to integrate their computer networks, hired Lehman Brothers Inc to advise it on strategic alternatives for the business including a possible merger or sale.

Business confidence in Germany, Europe’s biggest economy, dropped for a third month in four in August on concern record oil prices and flagging consumer spending will curb the pace of economic growth.

Dublin web services security company Vordel has signed a global technology and distribution agreement with Software AG.