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Symantec and Broadcom cease deal negotiations: Sources

Symantec and Broadcom have ceased deal negotiations, sources tell CNBC’s David Faber. The people familiar with the matter added that Symantec would not accept less than $28 a share.

Symantec had surged earlier this month following after it was revealed that Broadcom was in advanced talks to acquire the security software vendor. Faber had reported that the two sides were negotiating a price and had seen possible synergies of $1.5 billion.

Symantec shares dropped 14% in $22.04 on Monday.

Symantec has been dogged in recent years by management turnover and a softer core business as cloud security companies have captured enterprise market share and a newer companies offer ways to protect mobile devices.

Chipmaker Broadcom, in the middle of an acquisition sprint, bought CA Technologies for $19 billion last year and tried to purchase Qualcomm before the U.S. Department of Justice blocked the deal.

Even without Symantec, Broadcom has been working to acquire an infrastructure software company and has considered Tibco, three people familiar with the matter told CNBC earlier this month. Vista Equity Partners acquired Tibco for $4.3 billion in 2014.

Still, the acquisition of a software company could give Broadcom a needed boost as trade tensions hurt its core semiconductor business and its relationship with Chinese telecommunications giant, Huawei. Broadcom cut its forecast for chip sales this year by $2 billion after Huawei was blacklisted in May from buying U.S. technologies.

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