Rackspace shares surge on report that Amazon is in talks to invest in company

Shares of Rackspace surged nearly 12% Monday morning on a report that Amazon is in talks to invest in the cloud services company. 

Trading was briefly halted due to volatility after the report was published in Reuters.

The Reuters report said that Amazon is interested in acquiring a minority stake in Rackspace, which helps companies shift their data to Amazon Web Services (AWS). Rackspace held its IPO earlier this month. Private equity firm Apollo Global Management is the majority owner of Rackspace.

The Reuters report said it could take months for Amazon to work out an investment deal with Apollo.

Spokespeople for Amazon, Rackspace and Apollo did not immediately respond to a request for comment. 

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