Symantec has stalled its negotiation talks with Broadcom for a proposed merger as the company is not willing to sell less than $28 per share, according to CNBC. The proposed deal was expected to value Symantec at more than $22 billion including debt.
While talks to sell Symantec was underway, CNBC’s David Faber had said that the company’s share price could range between $25 and $30 per share. Symantec shares dropped as much as 15 percent to $21.70, while Broadcom shares rose to more than 2.5 percent.
Symantec is an American software firm headquartered in California. Earlier this month reports said that the CEOs of both companies are working to strike a significant merger. In fact Symantec interim CEO Rick Hill was applauded for turning the troubled firm into a potential candidate for Broadcom to take over.
Last year, Broadcom acquired CA Technologies for nearly $19 billion in cash. “We know that the CA takeover is doing better than they expected, in part, because CA shared a ton of large enterprise customers with Broadcom,” CNBC’s Jim Cramer said.
Broadcom had previously reported that it would go an acquisition spree after Trump administration had stalled its Qualcomm takeover bid for $117 billion. Its seeks competitive advantage in the industry with the acquisition of software companies. However, Morgan Stanley analyst said that its plans to acquire Symantec only raise concerns about its strategy.
In June, Symantec stocks fell below $18 but rose 14 percent with the deal’s announcement. Cramer added if Rick makes the Broadcom deal work, the opportunity would grant him a position in the “‘Mad Money’ hall of fame.”