Home / Business / Broadcom's bid for Symantec reportedly blocked

Broadcom's bid for Symantec reportedly blocked

Broadcom's efforts to buy Symantec have been suspended in recent days, informed people said on Monday after the two companies objected to a repurchase price late in the negotiations.

The decision puts on hold, at least for the moment, efforts to create one of the most important and unusual marriages in the field of technology this year. Broadcom is a leading semiconductor manufacturer, while Symantec is a leading provider of security software.

The suspension means that Broadcom will not have signed two high-profile contracts in the last 18 months. Last March, the chip maker was forced to cancel a $ 117 billion takeover bid on Qualcomm, a wireless chip maker. The deal failed after President Trump blocked efforts for national security reasons, explaining why the acquisition could hurt America's competitiveness in the race to develop 5G wireless networking technologies.

The latest decision was made late in the negotiations, as Broadcom was conducting a pre-audit of Symantec, said the people. The companies were aiming to announce an agreement on Tuesday, said one of the people.

What Broadcom has discovered is unclear. The company has reduced its public bid for Symantec by $ 28.25 per share, which valued the software maker at about $ 18 billion, or more than $ 1 per share, the company said. same person. Symantec hesitated over the move, said the person. The resumption of negotiations depends on the ability of companies to reach a price agreement.

The failure of the talks has baffled some on Wall Street. Wedbush Securities' Daniel Ives wrote in a research note to his customers on Monday that the apparent recalcitrance of Symantec was a headache, given that its business has experienced economic difficulties in recent years.

Broadcom and Symantec representatives did not respond to requests for comment.

Shares of Symantec fell more than 10% on Monday, to 22.84 USD, after CNBC said the talks had been halted. Broadcom shares rose about 1% to $ 288.34.

Source link