Avago Technologies Ltd., which makes semiconductors for the
cellular, automotive and defense industries, agreed to buy wireless
chipmaker Broadcom Corp. for $37 billion in the biggest technology
acquisition ever.
Avago will pay $17 billion in cash and $20 billion in stock, the
companies said in a statement. The Singapore-based company’s offer
values Broadcom at $54.50 a share in cash, compared with a closing price
of $57.16 on Wednesday, when the stock rose the most since 2001 after
reports of an imminent deal. The offer is 16 percent above where
Broadcom’s shares closed Tuesday.
The stock fell 2.1 percent to $55.98 -- still above the offer price
-- at 10:48 a.m. in New York on Thursday. Avago’s shares rose less than 1
percent to $142.35.
The transaction is the biggest in the technology industry, according to data compiled by Bloomberg.
http://www.bloomberg.com/news/articles/2015-05-27/avago-said-near-deal-to-buy-wireless-chipmaker-broadcom
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