Broadcom proposes $130 billion deal to buy Qualcomm

A Qualcomm spokesman contacted by TechCrunch declined to comment on Broadcomm's proposal at this time.

GBH Insight analyst Daniel Ives said bullish investors were hoping for $75 to $80 per share.

But President Donald Trump appeared with Broadcom's chief Mr Tan last week, saying the company will relocate its legal base to the United States - a move which is expected to free Brocade's bid from the CFI review.

On Monday, Qualcomm's shares were up 3 percent at $63.71 in morning trading, suggesting that investors were skeptical a deal would happen. Jeffrey Henderson, another Qualcomm board director, was added past year as a compromise candidate.

"We are well advised and know what our options are, and we have not eliminated any of those options", said Tan, who has pulled off a string of deals over the past decade.

"Now it's a game of high-stakes poker for both sides", he said.

The resulting tech company would control key components needed to make smartphones and is likely to face scrutiny from regulators.

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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.

Broadcom rose up by 5.5 percent on Friday for a estimated market value of $112 billion.

Tan added that if Broadcom acquires Qualcomm which in turn has acquired NXP, the combined company's net debt could be in the range of US$90 billion.

Broadcom's proposal was unanimously approved by its Board of Directors. Analysts say that if Broadcom can salvage the Apple relationship, it would sharply increase potential returns from the takeover.

Tan will be in NY and Boston this week for meetings with Qualcomm shareholders, according to people familiar with the matter.

The bid comes as Broadcom plans to move its headquarters to the United States from Singapore.

Semiconductor vendor Broadcom is on the verge of making a $130bn (£99bn) bid for chip maker Qualcomm in what would be the largest technology takeover ever, according to reports.

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