Brocade Shopping Self, HP Possible Buyer: Sources

NEW YORK (Reuters) - Brocade Communications Systems Inc has put itself on the block and Hewlett-Packard Co is one of the companies that could be interested in buying the network equipment maker, people familiar with the matter said.

Brocade, which sells routers and switches as well as software to help companies manage data networks, has shopped itself around to potential buyers for a few weeks, the sources told Reuters on Monday. They said the process is still in preliminary stages.

One source described it as "feelers" rather than a formal process, and said a deal may not happen.

A deal for Brocade, whose equipment and software make it attractive to companies seeking to boost their presence in corporate data centers, would be the latest in a whirlwind of technology dealmaking in recent weeks.

One possible buyer is Hewlett-Packard, the world's No. 1 personal computer maker, which also makes server computers used in corporate data centers.

Sources said HP has looked at Brocade's assets, but has not yet made a formal bid. That could be because HP is potentially interested in acquiring only certain components of Brocade, one source said.

HP wants to fill holes in its portfolio, especially after Cisco Systems Inc moved into its traditional server turf earlier this year, and people familiar with the company's strategy have said it is looking at both software and networking acquisitions.

Shares of Brocade, which bought Foundry Networks last year and has expanded sales partnerships with large technology vendors such as IBM and Dell Inc , rose as much as 19.9 percent after The Wall Street Journal reported that it was up for sale.

The Journal also named Oracle Corp as a possible buyer of Brocade, which entered the day with a market capitalization of $3.2 billion.

Oracle executives were not immediately available for comment. Brocade and HP executives declined to comment.