Broadcom Takes Aim at Qualcomm with Unsolicited $130B Bid
Broadcom today made an unsolicited offer to buy Qualcomm for $70 per share, a deal valued at approximately $130 billion. According to Broadcom, the merged entity would be a diverse communications semiconductor company that would be able to accelerate innovation, deliver more advanced products, and create compelling financial savings/efficiencies. Broadcom believes its own portfolio of chips differs enough from Qualcomm's that the two could form a better global competitor. Broadcom said it will pursue Qualcomm whether or not the latter is able to successfully close its in-progress acquisition of NXP. Broadcom plans to move its international headquarters from Singapore to the U.S. in order to facilitate the acquisition and manage the joint entity moving forward. The deal is subject to board agreements, shareholder approval, and government scrutiny. Making an unsolicited offer for a public company effectively puts the target company up for sale, opening up the process to rival bids from other companies. Qualcomm can accept or reject Broadcom's offer, but its board officers are legally bound to find the best deal. Qualcomm's board said it "will assess the proposal in order to pursue the course of action that is in the best interests of Qualcomm shareholders."
Qualcomm Rejects Broadcom's Acquisition Offer
Qualcomm's board of directors today unanimously rejected Broadcom's Nov. 6 offer to buy the company in a deal that would have been valued at approximately $130 billion.
Avago Technologies May Buy Broadcom
Avago Technologies is in advanced talks to acquire Broadcom, reports the Wall Street Journal. Terms of the deal are not yet available, and the Journal's sources say the deal may not be signed.
Avago to Buy Broadcom for $37 Billion
Avago Technologies today said it plans to acquire Broadcom for $37 billion. Avago is offering Broadcom's shareholders $17 billion in cash and $20 billion in Avago stock.
Broadcom to Cut Up to 1,900 Jobs
Broadcom Limited said it plans to reduce its headcount by about 1,900 jobs. The cuts will be made across Broadcom's global facilities and the company expects to take a charge of $650 million to cover the cost of the cuts.
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