Broadcom Mulls Bigger Bid for Qualcomm Report
With its initial $105 billion acquisition offer for Qualcomm already rejected, Broadcom is considering a revised offer that would include more of its stock, according to a Reuters report.
Broadcom Corp. (Nasdaq: BRCM) initially offered $70 per Qualcomm Inc. (Nasdaq: QCOM) share, comprising $60 in cash and $10 in stock, with the overall takeover deal was valued at $130 billion once Qualcomm's $25 billion debt pile is taken into account. (See Broadcom Offers $130B for Hostile Takeover of Qualcomm and Qualcomm Rejects $105B Bid From Broadcom.)
Now, according to the Reuters report, which cites "people familiar with the matter," Broadcom is prepared to raise the value of its offer by including more of its own stock: Quite how much and when such an offer might be put in front of Qualcomm shareholders is not known.
Broadcom's share price dipped slightly, by 0.44%, to $275.37 following the Reuters report, while Qualcomm's stock gained 2.2% to $68.13.
In an ongoing poll on Light Reading, almost 65% of people regard Broadcom's bid for Qualcomm as "madness," while 35% believe it's a good move. Add your vote to the poll here. (See Should Broadcom Really Be Buying Qualcomm?)
Ray Le Maistre, International Group Editor, Light Reading