Computer Sciences Corp. rose as much as 7.1 percent after Reuters reported the technology consulting company plans to split in two.
A deal may be announced as soon as next week, when CSC reports earnings on May 19, Reuters said, citing unidentified people familiar with the matter. Rich Adamonis, a spokesman for CSC, said the company doesn't comment on market rumors.
The shares gained 4.3 percent to $67.30 at 2:13 p.m. New York time after reaching $69.11 for the biggest intraday increase since Feb. 23. Thursday's trading lifts CSC's market value to about $9.5 billion.
CSC has struggled through a shift away from traditional technology infrastructure and sales to focus instead on software and services. So far, the company has fallen short. Revenue has missed estimates in the past two quarters, dragged down by the repositioning of its global business-services unit and restructuring of its infrastructure division.
The report of CSC's plan to separate in two companies follows several attempts to sell itself over the past years.
In February, Jana Partners LLC disclosed an activist stake, saying it had held talks with CSC about its strategic alternatives. The move came after the company had contacted private-equity firms including Blackstone Group LP and Bain Capital LLC to gauge their interest in a leveraged buyout, Bloomberg News reported in September.