Intel casts doubt on report of interest in Broadcom
CALIFORNIA (Reuters) – Microchip maker Intel Corp responded to a report that it is considering a possible bid for Broadcom Ltd by saying that it is focused on integrating previous acquisitions, raising doubt over the idea.
The Wall Street Journal reported on Friday that Intel’s competitive concern about Broadcom’s attempt to buy mobile chip rival Qualcomm Inc had led it to consider buying Broadcom, as one of several responses.
Responding to an inquiry about the Journal’s report, Intel said it does not comment on “rumors or speculation” related to mergers and acquisitions but that it is focused on its previous acquisitions.
“We have made important acquisitions over the past 30 months – including Mobileye and Altera – and our focus is on integrating those acquisitions and making them successful for our customers and shareholders,” Intel said in a statement to Reuters.
Broadcom representatives did not immediately respond to a request for comment.
The Journal reported that Intel had been considering a Broadcom bid since late last year and was working with advisers, although the newspaper said that one of its sources described a bid as unlikely given the complexity of the combination.
Broadcom’s bid for Qualcomm would combine two firms with close to $100 billion market capitalizations each in the biggest tech deal ever. An Intel deal would be significantly bigger, since its market capitalization alone is nearly $240 billion.