Broadcom in £78.5bn offer for rival firm
CHIP MAKER Broadcom Ltd on Monday announced an unsolicited bid to buy peer Qualcomm for $103bn (£78.5bn) as it looks to boost its presence in the wireless market, setting the stage for what could be one of the biggest takeover battles.
Qualcomm said it would review the proposal and act in the best interests of its shareholders. The company is inclined to reject the bid as too low and fraught with risk that regulators would reject it or take too long to approve it, people familiar with the matter said.
A tie-up would combine two of the largest makers of wireless communications chips for mobile phones and raise the stakes for Intel Corp, which has been diversifying into smartphone technology from its stronghold in computers.
Broadcom approached Qualcomm last year to discuss a potential combination, but it did not contact Qualcomm prior to unveiling its $70 per share offer on Monday, according to the sources.
Qualcomm is more vulnerable to a takeover now because its shares have been held down by a legal dispute with Apple, as well as concerns it may have to raise its own $38bn bid for NXP Semiconductors that it made last year.
Broadcom said Qualcomm shareholders would get $60 in cash and $10 per share in Broadcom shares in a deal.