Earlier this week, Broadcom said it offered Qualcomm shareholders a $ 70 a share, including $ 60 in cash and a $ 10 Broadcom stock, which if approved, will be by far the largest chip industry takeover , Surpassing the $ 60 billion merger between Dell and EMC in 2016.
However, according to the British "Financial Times" report, Qualcomm will reject this Broadcom initiative to offer 103 billion US dollars offer.
The FT reported that the offer underestimated the value of Qualcomm and was still below its board of directors' careful consideration of the offer price for sale, despite the fact that Broadcom was the first to be interested in acquiring QUALCOMM last weekend, with a closing price of 28 % Premium.
Qualcomm said Monday its directors are evaluating Broadcom's offer and will take action in the best interest of its shareholders.
Bloomberg reported that, at the same time, Broadcom is preparing for a proxy war, if Qualcomm's board of directors rejected the deal, Broadcom may direct marketing to Qualcomm shareholders advocacy.Broadcom there is another strategy, that is, in 2018 Prior to the Annual General Meeting of the Company, nominated a director of Qualcomm's board of directors.
However, traders are skeptical about Broadcom's successful acquisition of Qualcomm.
The stock rose again on Monday but hit a high of $ 65.32 a share just before midday in New York, still below the issue price, indicating traders are cautious.
What if the merger means for both companies?
Broadcom has been keen on mergers and acquisitions expansion, it can be described as a mergers and acquisitions mad. In the past three years, they have a lot of global semiconductor industry mergers and acquisitions. On November 2 last year, Broadcom announced that it will acquire 5.5 billion US dollars in cash network equipment manufacturing Business Brocade to expand its Fiber Channel and data storage business.
Broadcom's bid to acquire QUALCOMM is an ambitious attempt to expand its market share for the smartphone parts market, with its many mobile chips (such as the iPhone X, which have some) and telecommunications infrastructure But it has not grown much in terms of LTE and 5G chips, which is a big issue in a market where smartphones dominate, and if Broadcom succeeds in acquiring Qualcomm, it will be able to do anything for the next Ready - and it will dominate the mobile chip space.
At the same time, this is also a timely tender offer for Qualcomm Qualcomm this year and Apple in global patent disputes on patent licensing issues, this year's earnings are therefore hurt.If Qualcomm and Broadcom merger, the combined company will be Is second only to Intel and Samsung's third-largest maker of chips, but it will almost certainly provoke the US Department of Justice to arouse their antitrust concerns.
Prior to the acquisition of Brocade, the number of Broadcom patents came just behind the top three chip makers, including Qualcomm (71,167 patents), Intel (95,969 patents) and Renesas (40,751 ). After the acquisition of Brocade last year, it was pointed out that the number of Broadcom patents ranked the world's top three chip makers.