Intel mulls defensive Broadcom bid?
NEW YORK: Intel Corp is considering a bid for Broadcom Ltd as part of a range of acquisition alternatives in reaction to the Singapore-based chipmaker’s bid for United States rival Qualcomm Inc, the Wall Street Journal reported, citing people familiar with the matter.
Intel, the world’s secondlargest semiconductor maker, is keeping a close eye on the US$117 billion (RM457 billion) takeover battle and is eager for Broadcom to fail, because the combined company would pose a competitive threat, the Journal reported.
If Broadcom seems set to prevail, Intel could step in with its own offer, it reported.
Intel has been considering such a move since late last year and is working with advisers, according to the Journal.
While Intel isn’t ruling out an eventual approach to Broadcom, there are no takeover discussions under way, and that outcome isn’t the most likely one, according to a source.
Broadcom shares jumped as much as 8.3 per cent to US$275 in extended trading here on Friday. The report cautioned it’s far from guaranteed that Intel would make an offer and that it could pursue smaller acquisitions instead.
Broadcom currently has a market value of about US$104 billion. Its offer for Qualcomm has been met with resistance, not only from Qualcomm executives but also from the US government, which has initiated a review on national security concerns.
An Intel spokeswoman declined to comment on merger prospects but said the company’s priority is integrating existing acquisitions.
“We have made important acquisitions over the past 30 months — including Mobileye and Altera — and our focus is on integrating those acquisitions and making them successful for our customers and shareholders,” Intel said.