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Symantec, Broadcom cease deal negotiations: CNBC

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FILE PHOTO: A sign to the campus offices of chip maker Broadcom Ltd is shown in Irvine, California, U.S., November 6, 2017. REUTERS/Mike Blake/File Photo

(Reuters) – Cybersecurity company Symantec Corp (SYMC.O) and chipmaker Broadcom Inc (AVGO.O) have ceased deal negotiations, CNBC reported on Monday, citing sources.

Symantec’s shares fell 18% to $21.01 in trading before the opening bell, while those of Broadcom were up nearly 3%.

Symantec would not accept less than $28 per share, according to the report.

Jefferies said in a research note last week that it valued Symantec at $24 per share, or an enterprise value of $18.3 billion, and any sale at a premium to $24 would be a huge windfall to its shareholders.

The companies did not immediately respond to Reuters requests for comment.

The deal talks were first reported late on July 2 by Bloomberg, sending Symantec’s shares 14% higher.

The Symantec deal would have given Broadcom another push into software, a year after its $18.9 billion deal to buy U.S. business software company CA Inc last year.

Reporting by Akanksha Rana in Bengaluru; Editing by Saumyadeb Chakrabarty

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via Reuters