Brocade Communications is spiking on a report that the company is trying to sell itself

Shares of Brocade Communications spiked as much as 24% in trading on Monday after a report that the company is finalising talks to sell itself.

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.

NOW WATCH: LIZ ANN SONDERS: The most unsettling outcome for the markets would be a surprise Trump win

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at research.businessinsider.com.au.