Broadcom secured $100 billion in financing commitments from a dozen banks to fund its unwelcome Qualcomm takeover bid.
Bank of America, Merrill Lynch, Citigroup, J.P. Morgan, Wells Fargo, Morgan Stanley and Deutsche Bank were among the financial institutions which agreed to lend credit and bridge financing to Broadcom’s venture. Private equity company Silver Lake, which put forth nominees for Qualcomm’s board as part of the takeover attempt, also joined with investment groups KKR and CVC Capital Partners to supply $6 billion in financing toward the transaction and post-close capital needs.
The money is enough to fund the $60 per share cash portion of Broadcom’s bid: the company also offered $22 in Broadcom stock per share for a total offer of $82 per share, or $146 billion.
Details of the financing comes just ahead of a meeting between Qualcomm and Broadcom scheduled for 14 February. During the sit down, the pair will see if they can resolve disputes around Qualcomm’s valuation and Broadcom’s commitment to overcome regulatory uncertainties. However, Qualcomm noted its customers are wary of a potential Broadcom takeover, revealing two major clients have already threatened to withdraw their business if a deal is reached.