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
Business Insider Emails & Alerts
Site highlights each day to your inbox.