Broadcomm all set to acquire rival Qualcomm in a record deal
If the bid is accepted, then it would be biggest ever takeover of a chipmaker.;
Shares of Qualcomm have spiked after reports from the Wall Street Journal and Bloomberg News that rival chipmaker Broadcom may be preparing a bid. Bloomberg says the deal could be for more than $100 billion.The rumored figures indicate a cash plus stock offer of $70 per share. Qualcomm declined to comment while Broadcom did not respond to questions.
The two companies are already involved in big deals from about a year ago. Regulators are still reviewing Qualcomm's $38.1 billion proposed acquisition of NXP Semiconductors for $38.1 billion. Broadcom's plan to move its home address to the US from Singapore would free its $5.5 billion deal for US network provider Brocade Communications Systems from a review by the Committee on Foreign Investment in the United States.
The stock of San Diego-based Qualcomm jumped 12.7 per cent to close at $61.81. Broadcom, on the other hand, added 5.5 per cent to $273.63.
—with inputs from Bloomberg and WSJ
