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Comms chips

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

danielcawrey 11/24/2017 | 4:40:57 PM
Re: Likely Going to Happen This is a deal that needs to be made. Qualcomm has been good at staying out of the limelight until most recently. Now, news of fines and lawsuits could be repaired with a blockbuster merger. 
Phil_Britt 11/24/2017 | 10:54:19 AM
Likely Going to Happen Though I'm not a stock analyst, when companies start upping their bids for takeover targets, typically the sides eventually come to an agreement, from anecdotal evidence I've seen of many stock deals over the years. Don't know that this one will catch any attention from the Justice Department, which is a good for any potential merger/acquisition.
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