BOSTON (TheStreet) -- Brocade Communications Systems (BRCD) was one of several stocks trading on above-average volume Wednesday on reports the company is a buyout target.

Brocade shares rose on rumors that IBM ( IBM - Get Report) may be interested in making a bid for the data storage company, according to market chatter reported on by Briefing.com and TheFlyOnTheWall.

Earlier this week, IBM acquired Netezza, another data storage company, in a $1.7 billion deal. On Wednesday, The Financial Times reported that IBM warned that its aggressive acquisition strategy and organic growth could be impacted by increased regulation of the derivatives market.

Shares of Brocade are rallying by 56 cents, or 10%, to $6.21 on the reports. Volume topped 51.7 million shares, compared to the average daily share volume of 15.3 million.

Elsewhere, Origin Agritech ( SEED) are jumping by $1.20, or 15.8%, to $8.79 after the company's wholly-owned subsidiary, Origin Biotechnology, said it has reached an comprehensive, worldwide agreement with the Institute of Plant Protection, Chinese Academy of Agricultural Sciences (CAAS).

The deal gives Origin global rights to sell and develop field crops products that include the Bt-gene, a common soil bacterium that produces crystals that are toxic to certain insects. Volume topped 3.6 million shares, compared to the average daily share volume of 588,000.

On the downside, shares of Vical ( VICL - Get Report) are dropping by $1.07, or 27.7%, to $2.79 after partner Sanofi-Aventis ( SNY) announced Wednesday that its experimental drug NV1FGF for limb ischemia failed in a late-stage trial to demonstrate superiority over a placebo in the prevention of amputation or death in patients who were not eligible for surgery. Volume topped 3.8 million shares, compared to the average daily share volume of 276,000.

Meanwhile, iStar Financial ( SFI) shares continued to fall, lately down 50 cents, or 14.4%, to $2.98, one day after reports the real estate investment company will begin negotiating a prepackaged bankruptcy plan next month.

Bloomberg reports that the Chapter 11 filing isn't likely to come until 2011 when debt comes due, citing people familiar with the situation. The company is also considering extending maturities on debt or proposing an exchange offer, according to the report.

iStar shares are down more than 25% over the last two sessions. Volume on Wednesday topped 14.6 million shares, compared to the average daily share volume of 1.7 million.

-- Written by Robert Holmes in Boston.

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