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Broadcom makes offer to acquire Qualcomm in record $105bn deal

Broadcom makes offer to acquire Qualcomm in record $105bn deal

CNBC, however, reported that Qualcomm rebuffed Broadcom's initial offer, which was made in private. Broadcom has said, however, that its offer stands irrespective of whether the NXP deal goes through or not.

Both the S&P 500 and the Dow Jones industrial average hit new record highs Monday after news broke that Broadcom proposed to acquire Qualcomm in a deal valued at $130 billion.

The Broadcom offer of $70 per share to Qualcomm stockholders would be $60 per share in cash and $10 per share of Broadcom. Whether Qualcomm shareholders will push the company to accept the deal remains to be seen.

Such a massive deal has the potential to invite scrutiny from regulators, but Broadcom CEO Hock Tan said in a letter to Qualcomm that he was confident that the transaction would not raise any red flags for antitrust enforcers.

One aspect that might be an issue is Qualcomm's efforts to close its $38-billion acquisition of NXP Semiconductors NV, which makes chips for vehicles with an eye to self-driving technology.

Many analysts are saying Broadcom is making the play while Qualcomm's business is weaker than usual, as it continues its legal battle with Apple and saw its shares tumble as the company threatens to remove its chips from its smartphones. According to reports people involved with Broadcom believe that it will not shy away from initiating a "proxy fight to gain seats on Qualcomm's board of directors in support of its offer".

Qualcomm is now trying to close its pending $38-billion acquisition of NXP Semiconductors, a leading supplier of chips for vehicles that is also expanding into self-driving technology, and it is believed that Broadcom is open to acquiring NXP.

Qualcomm shares, which traded over $70 as recent as December 2016, closed at $61.81 on Friday. The statement said that there would be no further comment from the company until the assessment was completed.

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