Qualcomm Set To Reject $130bn Bid From Broadcom (ft.com)

Tim Bradshaw, reporting for Financial Times: Chipmaker Broadcom officially unveiled a $130bn offer, including net debt, for Qualcomm on Monday, in what could be the largest tech deal in history. Under Broadcom's proposal, Qualcomm shareholders would receive $70 per share -- $60 in cash and $10 in shares of its rival. It would value Qualcomm's equity at roughly $103bn. Qualcomm is set to reject Broadcom's takeover offer (Editor's note: the link could be paywalled; an alternative source wasn't immediately available), as the US chipmaker views its rival's $130bn proposal as too low and fraught with regulatory risks, people familiar with the matter said. The offer represents a 28 per cent premium over Qualcomm's share price on November 2, after it first emerged that Broadcom was preparing an offer. Broadcom also said that its offer stands whether or not Qualcomm completes its $38bn acquisition of NXP, which has yet to close.

Comments

Shareholders Should Take It

[bill_mcgonigle]

With Qualcomm execs thinking they can extract percentages of device prices from manufacturers rather than just charging a fair price for a part, and their other aggressive and anti-competitive lawsuits they have going, shareholders should welcome new management before the company goes the way of SCO and Oracle/Java. We've heard Apple is already preparing to jump to Intel for radio silicon and others will rapidly follow, importantly and especially on the high end.

And that's without being a fan of Broadcomm at all - they've been really bad with security, documentation, NDA's and support to the point of shooting themselves in the foot with selling their MIPS platform, etc. into the embedded linux space. I'm willing to bet that their move to Singapore will be good for the ecosystem though.