Intel planning to bid for Broadcom: Report

Intel planning to bid for Broadcom: Report
Click for full image

San Francisco: Intel Corporation is reportedly mulling a bid for semiconductor company Broadcom, a month after the latter’s proposal to takeover rival Qualcomm was rejected.

“Intel Corp. is considering a range of acquisition alternatives in reaction to Broadcom Ltd.’s hostile pursuit for Qualcomm Inc. that could include a bid for Broadcom,” Wall Street Journal reported on Saturday.

Broadcom has been aggressively pursuing its bid for Qualcomm that could pose much larger competition for Intel which is the de facto leader of processors for desktops and laptops.

“Intel is watching the takeover battle closely and is eager for Broadcom to fail as the combined company would pose a serious competitive threat,” the report added.

This report comes at a time when Broadcom’s attempt to buy Qualcomm is said to be in jeopardy as the US Treasury’s Committee on Foreign Investment (CFIUS) outlined concerns it had about the transaction.

In letter addressed to both the company’s lawyers, CFIUS listed issues, including Broadcom’s reputation for cutting research spending, a concern Microsoft and Google shared.

It also mentioned potential national security risks that could arise from exploiting or compromising Qualcomm’s assets through arrangements with “third party foreign entities”, according to CNBC.

Qualcomm’s board of directors unanimously rejected an acquisition proposal from rival Broadcom in February saying that they are turning down the latter’s $121 billion bid.

The multinational semiconductor company said that it was still undervalued at $121 billion after Broadcom make a revised offer to Qualcomm on February 6, up from the previously proposed deal price of $70 per share.

IANS