Apple supplier Qualcomm confirms takeover approach by rival Broadcom

07 November, 2017, 01:37 | Author: Gladys Mathis
  • A sign is posted at a Qualcomm office on November 1 in San Jose California. – AFP

Broadcom president and CEO Hock Tan called the proposal "compelling for stockholders and stakeholders in both companies", and claims a deal would position the combined company as "a global communications leader". That marks a 27.6% premium over Qualcomm's stock closing price ($54.84) on 2 November. Including debt, Broadcom's bid values the transaction at $130 billion.

First reported by Bloomberg, Broadcom is said to be readying an assault on publicly listed Qualcomm and planning to offer shareholders $70 a share.

Perhaps the most important new news on the bid is that Qualcomm is expected to reject this deal as it undervalues the company. The combined Broadcom and Qualcomm, including NXP, will have pro forma fiscal 2017 revenues of approximately $51 billion and pro forma 2017 EBITDA of approximately $23 billion, including synergies.

On Monday, Qualcomm's shares were up 3 percent at $63.71 in morning trading, suggesting that investors were skeptical a deal would happen.

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.

Rand Paul suffered five broken ribs in alleged assault
According to an arrest citation, Senator Paul told police that his neighbor came onto his property and tackled him from behind. Kentucky State Police say Paul had minor injuries. "Thank you for your thoughts and prayers". "Senator Paul is fine".


Sir Michael Fallon's Official Resignation Statement
Williamson's appointment comes the day after longtime lawmaker Fallon resigned over allegations of inappropriate sexual behavior. Hartley-Brewer said she had not regarded the incident as "anything but mildly amusing".


Ballistic missile from Yemen intercepted near Riyadh - Saudi state media
According to videos published on social media, smoke could be seen rising near Riyadh's King Khalid International Airport. The missile was sacked across Saudi Arabia's southern border by Yemen's Houthi rebels, who are at war with the kingdom.


Any deal struck between the two companies would face intense regulatory scrutiny.

Qualcomm has a (long) pending acquisition, of chipmaker NXP Semiconductors NV, in the works - and Broadcom notes that its offer is not dependent on whether or not Qualcomm manages to close with NXP on the now disclosed terms (it's offering ~$39BN for the Netherlands-based chipmaker which has a focus on car-related applications and also security-based identification). Qualcomm recently agreed to buy NXP for a total of $47 billion in an all-cash deal.

The company has also got commitment letter for $5 billion debt financing from private equity Silver Lake Partners.

Broadcom's proposal was unanimously approved by its Board of Directors.

Broadcom plans to move its headquarters exclusively to the United States, which would allow it to avoid review by the Committee on Foreign Investment in the United States, which reviews foreign ownership of USA assets.

Recommended:



Popular

Why You Still Shouldn't Download iOS 11 On An Older iPhone
When attempting to type the lowercase letter "i", the software attempts to automatically capitalize the letter. But if I copy and paste that text, it pastes out correctly, reverting the A and the icon into the capital I.

Jared Goff throws 4 touchdown passes in Rams' blowout win over Giants
Four plays later, Tyler Higbee caught an eight-yard touchdown from Jared Goff for the first points of the game. The 34-point deficit tied for the third-worst home loss in the franchise's 92-year history.

Muslim youth offers Rs 25000 for blackening Kamal Haasan's face
While BJP leaders like Vinay Katiyar called Kamal "mentally unstable", the RSS has also hit out at the actor. But this old tactic was defeated and what they started to do is use muscle power.

Rockford officer killed, another hurt in crash, possible shooting
Authorities say a police officer and another man were both found dead at the scene of a single-vehicle crash in northern IL . He served in the United States National Guard and was a graduate of Hononegah High School and Northern Illinois University.

Fears up to 27 killed in Texas church shooting
President Donald Trump has tweeted from Japan that he is monitoring the situation in Texas following a mass shooting at a church. The Wilson County News quoted Wilson County Sheriff Joe Tackett on the casualties and that the shooter was now dead.

Young one of four Reds in England squad
With his unfortunate history of injuries, we want to make sure he's robust enough before we bring him in. 'He is a top player. But Southgate does not see it like that. "There is no question about his ability, his football brain or personality".

It's Time To Turn Back The Clocks
While this means an extra hour of sleep, it also means that sunrise and sunset will occur an hour earlier starting with Sunday. Anything device you own that you manually set the time on though will need to be changed once daylight saving ends.

Mobile, Sprint call off merger attempt
Sprint hasn't had a profitable year in a decade, leaving a pile of credits from net operating losses that could benefit T-Mobile. It is still possible that Sprint will reject the new terms or decline investing any more effort into the potential merger.

Bowe Bergdahl spared prison time for US Army desertion
Bergdahl "is grateful to everyone who searched for him in 2009, especially those who heroically sustained injuries", Fidell added. Army Colonel Jeffery Nance delivered the sentence in a hearing that lasted just two minutes, and did not comment on his decision.

Facebook Reports $10.3 Billion in Revenues
Yesterday afternoon-one day after Facebook , along with Google and Twitter , testified to U.S. Facebook reported cash available of $38.2 billion at the end of the quarter.