Wall Street Speculator Eyes Digital Insight

WALL STREET – Well-known speculator Mario Gabelli has accumulated a 5.2% stake in Digital Insight, even as the popular Internet services provider for credit unions, has agreed to be acquired by Intuit Inc. Gabelli began acquiring the shares on December 14, two weeks after announcement of the deal, and paid about $65.3 million for the 1.7 million shares, an average of $38.38 each, according to a filing with the Securities and Exchange Commission. Gabelli said his representatives have been talking with Digital Insight representatives about other possible alternatives to enhance shareholder value, such as the sale of one of the company’s businesses. Even if the talks do not bear fruit and the Intuit $39-a-share deal goes through, Gabelli would earn about $1.1 million on his $1.7 million shares. Gabelli representatives would not return phone calls seeking comment.