Broadcom Willing to Go Hostile to Win $105 Billion Qualcomm Deal
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Broadcom Ltd. Chief Executive Officer Hock Tan is gearing up for what could be a lengthy and bruising hostile takeover battle to clinch his $105 billion offer for Qualcomm Inc., the largest-ever tech deal.
Broadcom, seeking to build a powerhouse that leads the market for chips that let electronic devices operate wirelessly, is prepared to launch a proxy battle should Qualcomm spurn the $70-a-share proposal outlined Monday, a person with knowledge of the matter said. Qualcomm is assessing the cash-and-stock proposal, but it’s inclined to reject Broadcom’s terms. Broadcom would then forge ahead with a direct appeal to Qualcomm shareholders, said the person, who asked to remain anonymous discussing private matters.
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 Nov. 2, before Bloomberg first reported talks of a deal. The proposed transaction would be the largest so far this year, valued at approximately $130 billion, including $25 billion of net debt.
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