"Intel is in a position of strength, but the Broadcom attempt to buy Qualcom has set off shock waves in the industry", Ives said in interview with this news organization on Friday.
While Intel isn't ruling out an eventual approach to Broadcom, there are no takeover discussions under way, and that outcome isn't the most likely one, according to a person with knowledge of the matter contacted by Bloomberg who asked not to be identified discussing private deliberations.
The announcement that Intel Corporation (NASDAQ:INTC) is making a consideration to buy Broadcom Ltd (NASDAQ:AVGO) which is valued at more than $100 billion has proven the extent to which the giant company feels threatened by the potential merger between Qualcomm and Broadcom. The purchase has been on the discussion table for Intel since a year ago, and according to the Journal, Intel is working with advisers to see if the purchase makes sense.
The WSJ notes that Intel is concerned that the acquisition, if successful, would create a powerhouse in both smartphones and data centres, two areas where Intel hopes to grow.More news: Browns trade QB DeShone Kizer to Packers. That's good for all parties
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Should the deal between Broadcom and Qualcomm fall through, Intel's attempt to try and acquire Broadcom would help the company add a host of smartphone chips, as well as Bluetooth and Global Positioning System components.
"In short, USA national security concerns are not a risk to closing, as Broadcom never plans to acquire Qualcomm before it completes redomiciliation", the company said.
Intel may be in the running to acquire Broadcom, should Broadcomm's purchase exercise of Qualcomm materialise. In that meeting, shareholders will also vote for Broadcom's slate of six nominees for Qualcomm's 11-member board.
While a new vote has been scheduled for April 5, a review by the Committee on Foreign Investment in the US (CFIUS) is expected to take longer. The Treasury Department is anxious a merger could dampen the US's competitive edge in wireless technologies, opening the door for China to lead in the sector. BidaskClub lowered Broadcom from a "hold" rating to a "sell" rating in a report on Thursday, January 11th. Intel acquired autonomous vehicle technology firm Mobileye previous year and acquired programmable chip maker Altera in late 2015. Intel could use the transaction to gain a beachhead in wireless handsets - an area it has so far struggled to penetrate. And meanwhile, the delay in the deal making as allows rumors to emerge that rival Intel is considering a bid for Broadcom.