Brocade Shares Jump on Rumors of IBM Buyout
Brocade shares jumped 11% to $6.26 in NASDAQ trading today. Trading volume today was more than four times its 30-day average.
IBM is among a group of companies, including Oracle Corp. (ORCL) and Hewlett-Packard Co. (HPQ), that have been acquiring smaller competitors as they accumulate cash, the wire service said. IBM's market value is about 60 times that of Brocade, which last month said it had a fiscal-third-quarter profit of $22 million, compared to a year-earlier loss of $23.5 million.
Representatives from both Brocade and IBM declined to comment, Bloomberg said.