Symantec Climbs on Report of Sale of Storage BusinessJordan Robertson
Symantec Corp. shares jumped 5.6 percent after the Dow Jones newswire reported that its storage unit may fetch more than $8 billion in a sale.
Symantec, which bought Veritas in 2005, is looking to spin off the data-storage business to focus on anti-hacking services and other security technology. The split was announced in October.
Symantec is exploring a sale of Veritas and sounding out private-equity firms and other industry bidders, Dow Jones reported, citing unidentified sources. Analysts and investors have long sought a breakup of the company, which has a market capitalization of $17.5 billion. They have argued Symantec’s businesses weren’t compatible, and that the company’s stock price was being hurt by fusing the high-margin security business with the less-profitable storage division.
Kristen Batch, a spokeswoman for Mountain View, California-based Symantec, declined to comment.
The shares of Symantec closed at $25.58 in New York on Friday, leaving them unchanged this year.