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Broadcom offers $103 billion for Qualcomm, sets up takeover battle

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retiredyoung

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07/11/17

08:06

Post #: 28557393
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Chip maker Broadcom Ltd made an unsolicited $103 billion bid for Qualcomm Inc on Monday

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A Broadcom-Qualcomm deal would create a dominant company in the market for supplying chips used in the 1.5 billion or so smartphones expected to be sold around the world this year. It would raise the stakes for Intel Corp, which has been diversifying from its stronghold in computers into smartphone technology by supplying modem chips to Apple Inc.

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Broadcom approached Qualcomm last year to discuss a potential combination, but did not contact Qualcomm prior to unveiling its $70 per share offer on Monday, according to sources.

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Qualcomm is more vulnerable to a takeover now because its shares have been held down by a patent dispute with key customer Apple, as well as concerns that it may have to raise a $38 billion bid for NXP Semiconductors NV that it made last year.

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Broadcom, Qualcomm and NXP together would have control over modems, Wi-Fi, GPS and near-field communications chips, a strong position that could concern customers such as Apple and Samsung Electronics Co Ltd because of the bargaining power such a combined company could have to raise prices.

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http://uk.reuters.com/article/us-qu...ualcomm-sets-up-takeover-battle-idUKKBN1D61EO
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