Qualcomm due to the acquisition of rumors on Friday, QualcommstockRose 12% over the last 61.81 US dollars / share closing. Prior to Thursday's media coverage, Qualcomm shares of 54.84 US dollars / share, Broadcom quoted a premium of 27.6%. Broadcom has been preparing quotes for months, trying to become the dominant supplier of communications chips in the wireless industry.
Broadcom has learned that privately contacted Qualcomm to discuss the offer, but was quickly rejected. The company had previously considered acquiring Qualcomm before Qualcomm acquired NXP Semiconductors a year ago. Broadcom now determined to attract the attention of Qualcomm shareholders. According to people familiar with Broadcom's ideas, the company would spar on proxy wars to get Qualcomm directorships in support of its offer.
Qualcomm is scheduled to hold a general meeting of shareholders in March next year, the deadline for nomination of directors is December this year. However, Qualcomm is expected to strongly resist Broadcom's offer. According to sources, Qualcomm is expected to point out that the quotation is much lower than expected. In addition, Qualcomm is expected to propose a merger with Broadcom will bring serious antitrust concerns.
Broadcom and Qualcomm mergers will give Intel greater pressure. In response, Broadcom and Qualcomm executives declined to comment.