Intel could launch bid for tech company Broadcom

Intel Expected To Post Favorable Earnings
Intel could intervene in Broadcom's pursuit of Qualcomm (Source: Getty)

Intel could launch a bid for US tech company Broadcom in a bid to scupper its pursuit of chipmaker Qualcomm.

Intel is watching Broadcom's pursuit of Qualcomm and could step in with a bid for Broadcom to head off what it sees as a competitive risk, The Wall Street Journal reports.

Broadcom's November approach for Qualcomm, which was rebuffed, was valued at $130bn (£93.8bn) and would have been the largest tech deal in history.

Read more: Qualcomm rejects Broadcom's blockbuster $130bn takeover bid

Broadcom has continued its pursuit, making further offers which have all been knocked back by Qualcomm.

A deal between the two would create one of the largest chipmakers in the world.

Meanwhile, Qualcomm has moved to acquire NXP Semiconductors in a deal that values the Dutch chipmaker at $44bn.

Read more: Qualcomm ups NXP bid as it continues to rebuff Broadcom takeover

A successful acquisition of NXP would put pressure on Broadcom to abandon its takeover attempt of Qualcomm or return with a higher price.

Neil Campling of bank Mirabaud Securities said: “Intel has been caught asleep at the wheel with the aggressive consolidation tactics of serial acquisition machine Broadcom.

“A potential combination of Broadcom-Qualcomm-NXPI would lead to a dominate platform in wireless chipsets.”

Intel and Broadcom were approached for comment.

Related articles