Broadcom Shares Jump on Report of Takeover Talks With Avago

Broadcom Corp. shares rose as much as 17.4 percent after Dow Jones reported that the wireless chipmaker was in talks to be bought by Avago Technologies Ltd.

The discussions are at an advanced stage, the newswire reported, citing unidentified sources.

Broadcom shares were up 15.5 percent at $54.21 at 2:05 p.m. in New York, giving it a market value of $32.2 billion.

Jen Baumgartner, a spokeswoman for Broadcom, declined to comment.

Broadcom is the biggest maker of WiFi chips that provide short-range connections for mobile devices. The Irvine, California-based company is shuttering its unit that makes modem chips for mobile phones. That’s reducing losses and expenses in a business that failed to gain significant market share from Qualcomm Inc.

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