Wafer-thin mint

7 November 2017 By Robert Cyran Follow @rob_cyran

The acquisitive chip company has become so big that it needs to take larger and riskier bets to maintain its super-charged expansion. Its $130 bln unsolicited offer for Qualcomm qualifies on both counts. If successful, Broadcom will be short of targets that can move the needle.

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Communications chipmaker Broadcom on Nov. 6 said it had made an unsolicited offer to buy smartphone chip supplier Qualcomm for $70 per share, or about $105 billion, in cash and stock, in what would be the biggest technology acquisition ever. Including net debt, the deal would be worth $130 billion.

Broadcom’s bid represents a premium of 27.6 percent to Qualcomm’s closing price of $54.84 on Nov. 2, a day before media reports of a potential deal pushed up the company’s shares. Qualcomm shareholders would get $60 per share in cash and $10 per share in Broadcom stock.

Qualcomm is trying to close its $38 billion acquisition of NXP Semiconductors, one of the largest makers of chips for vehicles. Broadcom said its proposal stands whether Qualcomm’s acquisition of NXP goes through or not.

Qualcomm said it had received the offer and would assess it.

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