Broadcom to ramp up pressure on Qualcomm with new $120bn bid
Broadcom is set to unveil a new bid of around $120bn (£85bn) for rival chip maker Qualcomm.
The firm was set to finalise a deal tonight that values Qualcomm at between $80 and $82 per share, up from a previous offer of $70 a share, made up of $60 per share in cash and $10 per share in stock, Reuters reported.
Broadcom is hoping to heap pressure on its peer ahead of a Qualcomm shareholder meeting set for 6 March. At the meeting, Broadcom will seek to replace the firm's board of directors.
The deal will also include a higher breakup fee than normal, sources told Reuters. A breakup fee – which would be paid in case a regulator scraps the deal – would typically be between three and four per cent of the offer.
However, sources warned Hock Tan, Broadcom's chief executive, could decide to significantly change the terms of the deal at the last minute.