Broad­com in £78.5bn of­fer for ri­val firm

Yorkshire Post - Business - - MARKET REPORT -

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.

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