Who Else Might Be Interested in Broadcom? -- Market Talk
DOW JONES & COMPANY, INC. 6:42 AM ET 5/28/2015
Symbol Last Price Change
AVGO 141.49up 0 (0%)
BRCM 57.155up 0 (0%)
INTC 33.71up 0 (0%)
ALTR 47.86up 0 (0%)
QUOTES AS OF 04:00:00 PM ET 05/27/2015
6:42 EDT - Pacific Crest says it makes sense for Avago(AVGO) to buy fellow chip maker Broadcom(BRCM) --so long as it unloads BRCM's connectivity business. AVGO has shown its past willingness to not absorb all of an acquisition, last year selling part of LSI. Meanwhile, the investment bank estimates BRCM could add more than 15% to AVGO's 2016 EPS "and allow the company to sustain outsized earnings growth" while it continues "to diversify away from mobile wireless." That would "increase investor confidence in longer-term sustainable growth." B Riley notes AVGO might not be the only interested party in what's now a $34B BRCM. "As we've previously noted, a compelling product-line-extension case can be made for" Intel(INTC) as buying BRCM would boost sales much more than Altera(ALTR) . (kevin.kingsbury@wsj.com; @kevinkingsbury)
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05-28-150642ET
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