Broadcom shares gained about 1.2 percent hike early Monday morning.
According to a statement released by the company, Broadcom hopes to increase its share of the advanced semiconductor market and is confident that its proposal will "receive all necessary [regulatory] approvals in a timely manner". The forward price-to-earnings ratio for Broadcom recently stood at 14.6, slightly above its 13.5 average.
Broadcom is working with five financing banks to offer a significant cash component for its bid, according to one of the sources. While it did not specify particular companies, Qualcomm and Apple have been in a long-running legal battle over licensing fees owed to Qualcomm. A combination with Broadcom would not change that.
Qualcomm and Broadcom have patent portfolios in wireless communications that are largely adjacent to each other, with Qualcomm covering mobile data networks and Broadcom covering WiFi and Bluetooth, experts said. The overall deal valued at $130bn.
Broadcom headquarters at UC Irvine's University Research Park. The deal has been delayed as it's scrutinized by the Committee on Foreign Investment in the United States, which investigates proposed acquisitions of USA companies by foreign buyers on national security and intellectual property grounds.