July 15, 2019 / 1:33 PM / 2 months ago

UPDATE 1-Symantec, Broadcom cease deal negotiations - CNBC

(Adds share price, details from the report, background)

July 15 (Reuters) - Cybersecurity company Symantec Corp and chipmaker Broadcom Inc have ceased deal negotiations, CNBC reported here 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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