Qualcomm shares fall 4.7 per cent to $59.85 premarket as President Donald Trump blocks Broadcom’s $117 billion buyout bid on national security grounds.
Qualcomm shares at their lowest since reports of a Broadcom bid in November 2017, on track to lose $4.4 billion in market value if current prices hold.
AVGO shares marginally higher premarket on Tuesday.
Presidential order reflects a view that the US’s lead in next-gen mobile tech would be lost to China if Singapore-based AVGO took over US-based Qualcomm, a White House official says
Trump’s halt likely puts an end to a four-month takeover battle between the chipmakers.
Qualcomm had gained 14.5 per cent since reports of deal emerged in November, but have constantly stayed firmly below AVGO’s offer price – raised to $82/shr after $70 offer was rejected.
However, AVGO lowered offer by $3 per share in February after Qualcomm raised its bid for NXP Semiconductors.
Source: The Hindu