Intel is considering several options in the face of Broadcom’s attempts to gain control of Qualcomm, including the possibility of buying Broadcom, The Wall Street Journal (WSJ) reported.
Broadcom, which was originally from the United States but now has its headquarters in Singapore, has launched a hostile bid on Qualcomm to create a semiconductor giant that would represent a strong competition against Intel, a leader in the sector.
Qualcomm’s management, however, has so far rejected the offers that Broadcom has made, while the US authorities have raised the risks posed by the operation for national security.
According to sources familiar with the intentions of Intel consulted by the Journal, this firm is following very closely the attempts of Broadcom to take control of Qualcomm, in an operation that would exceed 100 billion dollars.
According to the newspaper, Intel is confident that the merger between Broadcom and Qualcomm will not take place in the end, but should the negotiations progress, Intel could even launch an offer to buy Broadcom.
Among the stumbling blocks that can be found is the high value of Broadcom, which has a capitalization of about 109 billion dollars. Intel’s capitalization now reaches about 240 billion. But Intel is also looking at the possibility of buying another firm from the smaller sector, according to the newspaper.
Those options have been analyzed since the end of last year, according to the Journal, but it is still early to confirm that some of them will be finally made.