Tan visited President Trump at the White House last week to announce that Broadcom would be moving its headquarters from Singapore to Delaware. Today's Broadcom is the product of a $37 billion combination in 2016 between Avago, a Singapore-based company that was once part of a former unit of pioneering PC maker Hewlett-Packard, and Broadcom, another company with origins in Southern California which made chips for tablets, smartphones and other telecom and cable applications.
The proposal comes as Qualcomm is trying to close its pending $38-billion acquisition of NXP Semiconductors NV (NXPI.O). 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".
Broadcom released details of its proposed takeover of Qualcomm on Monday, and shares of both companies are rising on the news.
No. 18 Stanford to start KJ Costello at quarterback
In the five games that he has attempted a pass, Costello is 43 of 67 for 492 yards with four touchdown and no interceptions. No. 21 USC was up by four touchdowns before Arizona State got its first on a 47-yard catch-and-run to close the first half.
That will help it avoid a cumbersome federal review process for a $5.5 billion deal for US network provider Brocade Communications Systems.
And a premium of 33 per cent on Qualcomm's "unaffected 30-day volume-weighted average price".
Broadcom is working with five financing banks to offer a significant cash component for its bid, according to one of the sources. Broadcom primarily focusses on Wi-Fi and Bluetooth chips. We will maintain our fair value estimates of $68 for narrow-moat Qualcomm and $203 for narrow-moat Broadcom, but we would probably raise our fair value estimate for Broadcom-perhaps as much as 25%-if a definitive deal were reached.
Broadcom said if the deal is approved, it expected a combined company to have revenues of about $51 billion.