Broadcom Ltd. got KKR and Co. and CVC Capital Partners Ltd. on board for its hostile bid for fellow chipmaker Qualcomm Inc., the Wall Street Journal reported. Its sources, which weren't named, also said "a dozen" lenders committed funds for a takeover, with the overall figure coming in at $100 billion. The sum from banks includes revolving and bridge loans of $5 billion, the article adds.
The people familiar with the matter cited agreements with Bank of America, Citigroup, Deutsche Bank, JPMorgan and Morgan Stanley. An arrangement with Silver Lake Partners LP for $5 billion in convertible debt and working capital was expanded to the two private equity firms, landing the figure at $6 billion, according to the news outlet.
The target entity, based in San Diego, has rejected the last bid but opened the door for discussions. Broadcom, with dual headquarters in San Jose and Singapore, vowed to invest an equivalent of $120 billion. The cash segment of $60 per share would be covered with the said deals.
