Broadcom is preparing to unveil an unsolicited offer to buy Qualcomm for as much as $70 a share in cash and stock tomorrow morning, in a bold bid to become a dominant supplier of communications chips to the wireless industry, people close to the situation told CNBC on Sunday.
The $70 a share bid, equal to more than $103 billion, will be comprised of at least 75 percent in cash, and will also include Broadcom's willingness to have Qualcomm complete its pending acquisition of NXP Semiconductors for more than $38 billion in cash.
Qualcomm's stock, traded on the Nasdaq, surged by more than 12 percent on Friday amid speculation that Broadcom was preparing a bid. It finished the session at $61.81.
Broadcom's advisers were huddled in the mid-town Manhattan offices of its law firm Wachtel Lipton late Sunday afternoon deciding on final steps for the roll-out of its offer.
Broadcom has been working on its proposal for months and is believed to have approached Qualcomm privately about its offer, but was quickly rebuffed. The company had originally considered an attempt to buy Qualcomm prior to that company's deal to buy NXP more than one year ago, but upon getting no traction at that time, retreated.