Qualcomm poised for fight with Broadcom

Semiconductor firm Broadcom has bid to buy rival Qualcomm in a deal worth $130 billion, potentially one of the biggest tech mergers of all times in terms of value.

It's not a done deal, however. However, according to the FT, Qualcomm is set to reject the deal, raising the prospect of a fight for the future of the company.

Any deal between Broadcom and Qualcomm would have to be approved by Antitrust officials, who are still considering Qualcomm's purchase of NXP. It's prepared to launch a proxy battle should Qualcomm spurn the $70-a-share proposal, a person familiar with the matter has said.

Specifically Broadcom is offering to pay $70.00 per Qualcomm share, with $60.00 being in cash and $10.00 per share in Broadcom shares.

To acquire Qualcomm, the world's largest maker of mobile-phone chips, Broadcom would pay a 28 percent premium over the stock's closing price on November 2, before Bloomberg first reported talks of a deal.

According to sources Qualcomm is not aware of the details of Broadcom's bid and the company has yet to make any comment. "Further, we believe Qualcomm and Broadcom are uniquely positioned for reaccelerating revenue and earnings growth as the market transitions to 5G".

"We would not make this offer if we were not confident that our common global customers would embrace the proposed combination, and we do not anticipate any material antitrust or other regulatory issues that would extend the normal timetable for closing a transaction of this nature".

If the acquisition were to be successful, the merged companies would sit at third place in the chip-making industry, behind Intel and Samsung at second and first place, respectively. The combined company, now called Broadcom, is creating new headquarters in San Jose, California - a move it recently announced with Donald Trump.