Broadcom is speaking to advisers about the possible acquisition of Qualcomm, Bloomberg reported, with sources saying the bid could go higher than USD 100 billion. The offer would be for USD 70 per share, compared to Qualcomm's current price of around USD 61, in a cash and stock deal.
Although a final decision has not yet been made, the sources said a deal could be reached in the coming days. Both Broadcom and Qualcomm declined to comment.
Qualcomm is expected to reject any such bid, citing both expected regulatory opposition and a too-low offer. The company is already in the midst of acquiring NXP Semiconductors and a merger with Broadcom could see the combined group dominating certain chip markets. Qualcomm's share price has fallen in the past year from a peak of near USD 70 due to its legal dispute with Apple which has severely affected its earnings.
Broadcom meanwhile agreed the takeover of Brocade in the past year and LSI the year before, and was reportedly also interested in Toshiba's semiconductor business. A takeover of Qualcomm would more than double its revenues.
