Broadcom announced Monday that it has lined up $100 billion in debt financing for its takeover battle with San Diego’s Qualcomm.
The Singapore- and San Jose-based company said 12 financial institutions have committed to financing the transaction, including Citigroup, Wells Fargo and BofA Merrill Lynch. Three private-equity firms led by California’s Silver Lake will provide $6 billion to for post-closing working capital.
“Silver Lake is pleased to extend its partnership with Broadcom by making a major new commitment to an important combination that will create substantial value across the technology landscape and for investors in both companies,” said Kenneth Hao, managing partner at Silver Lake.
Qualcomm has twice rebuffed Broadcom’s $120 billion cash and stock offer, but has agreed to meet this week for discussions.
Broadcom is also waging a proxy battle by soliciting Qualcomm shareholders to vote in a new board of directors at the wireless pioneer’s annual meeting on March 6.
Qualcomm’s stock closed at $65.66 on Monday, well below the Broacom’s offer of $82 per share.
