(Reuters) - Marvell Technology Group Ltd (>> Marvell Technology Group Ltd.) is in advanced talks to buy Cavium Inc (>> Cavium Inc) - a deal that would create a chipmaker worth about $14 billion (10.71 billion pounds), Wall Street Journal reported.
Cavium shareholders would receive a modest premium, the report said, citing people familiar with the matter. A deal could be announced in the next few weeks if talks do not fall apart.
As of Friday's close, Cavium has a market capitalisation of about $4.5 billion, while Marvell had a valuation of over $9 billion.
Neither of the two companies immediately responded to request for comments.
Shares of Cavium were up nearly 13 percent in after-hours trading on Friday, while Marvell's stock was up about 6 percent.
(Reporting by Aishwarya Venugopal in Bengaluru; Editing by Arun Koyyur)