Brocade Communications is spiking on a report that the company is trying to sell itself
Oct 31, 2016, 22:36 IST
Shares of Brocade Communications spiked as much as 24% in trading on Monday after a report that the company is finalizing talks to sell itself.
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Bloomberg's Alex Sherman and Ian King reported that a sale of the data-storage and networking provider could announced as soon as this week. Citing people familiar with the matter, they reported that Broadcom is one of the interested potential buyers.
Broadcom makes semiconductors, part of the components that go into Brocade's networking equipment.
Brocade shares were down 5% year-to-date before the spike in trading. The company was worth about $3.5 billion. The move higher triggered a halt in the stock for volatility.
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