At $ 70 a share, the deal will total more than 103 billion U.S. dollars, at least 75% of which is cash, and Broadcom is willing to let Qualcomm complete its acquisition of NXP Semiconductors for more than $ 38 billion in cash.
Affected by this news, last Friday, the Nasdaq's Qualcomm shares rose more than 12% to close at 61.81 US dollars.
The sources said Broadcom consultants are fixing the final takeover plan at law firm Wachtel Lipton's Manhattan office on Sunday afternoon.
Broadcom has been researching the acquisition for several months, rumored to have said that Broadcom had privately contacted Qualcomm, but was soon rejected.More than a year ago, before Qualcomm proposed the acquisition of NXP Semiconductors, Broadcom considered the acquisition of Qualcomm , But eventually chose to give up.
This time, Broadcom decided to offer the acquisition directly to Qualcomm shareholders, sources said, Broadcom even consider competing proxy launch, won Qualcomm's board of directors seats, so as to support the acquisition program.
Qualcomm will hold an annual general meeting in March next year, and the deadline for the nomination of the board of directors is December.
Qualcomm is expected to strongly oppose Broadcom's acquisition program.Reason sources close to the company said Broadcom 70 dollars per share bid is much lower than Qualcomm may sell when the price is expected.In addition Qualcomm is also concerned that the merger with Broadcom will bring serious Antitrust issues.
Although Broadcom is willing to let Qualcomm complete the acquisition of NXP Semiconductor's transaction, but Broadcom may not want to raise the current offer of Qualcomm $ 110 a share of cash.NNG Semiconductor's shareholders are putting pressure on Qualcomm, hoping the company raise bids.
Both Qualcomm and Broadcom declined to comment.