Chip maker Broadcom announced an unsolicited bid to buy peer Qualcomm for $103 billion as it looks to boost its presence in the wireless market. Jade Barker reports.
Chip maker Broadcom is bidding $103 billion for peer Qualcomm. It's offering $60 in cash and $10 per share in Broadcom stock. Including debt, the bid comes up to $130 billion. A tie-up would combine two of the largest makers of semiconductors for mobile phones. It would also raise the stakes for Intel. Intel has been diversifying into smartphone technology from its stronghold in computers. Reuters editor Greg Roumeliotis is covering the story. (SOUNDBITE) GREG ROUMELIOTIS, EDITOR IN CHARGE, CORPORATE FINANCE AND M&A, REUTERS (ENGLISH) SAYING: "Qualcomm believes that the bid opportunistic and they will want more money to entertain talks. The question is how much, will Broadcom get to that level, and, if not, would they seek go hostile on Qualcomm by looking, for example, to throw out its board of directors." Qualcomm is more vulnerable to a takeover now because its shares have been held down by a legal dispute with Apple and its own $38 billion bid for NXP Semiconductors. Shares of Qualcomm traded higher in early trading. Broadcom was up as well.