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Symantec Plunges After CNBC Reports Broadcom Deal Is Off The Table

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Symantec Plunges After CNBC Reports Broadcom Deal Is Off The Table

Broadcom Inc's (NASDAQ: AVGO) reported interest in acquiring cybersecurity company Symantec Corporation (NASDAQ: SYMC) has come to an end with no merger agreement finalized.

What Happened

Sources close to merger talks told CNBC's David Faber Symantec isn't interested in any deal less than $28 per share. On its end, Broadcom's offer was "south" of $28 per share, which implies the two sides aren't going to agree on price.

"Talks between the two companies have broken down," Faber said. "In fact -- they are not talking."

Why It's Important

Investors shouldn't expect a private equity firm to save any deal since the potential $1.5 billion in synergies is simply "not there" for private equity buyers.

It should be noted Symantec interim CEO Richard Hill took the job in early May to "fix" the company and not "flip it," CNBC's Jim Cramer said. As such, Cramer "isn't against" Symantec refusing Broadcom's offer and its demand of $28 per share represents "full value."

Symantec investors could be looking at the latest development and urge the company to "reconsider" Broadcom's offer, Faber said. This wouldn't be unusual for scenarios where merger talks between two companies fall apart and Symantec.

Symantec's stock traded lower by 12.8% to $22.29 Monday morning.

Related Links:

Report: Broadcom Secures Financing For Symantec Acquisition

Wedbush: Broadcom Can Squeeze $1.3-$1.5B In Synergies From 'Bloated' Symantec

Posted-In: CNBC Cybersecurity David Faber semiconductorM&A News Top Stories Media Best of Benzinga

 

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