Marvell Technology discusses the redemption of Cavium, reports the Wall Street Journal


© Reuters. Marvell Technology discusses the redemption of Cavium, reports the Wall Street Journal

(Reuters) – Marvell Technology is at an advanced stage of discussions to buy its competitor, Cavium, a transaction that would give rise to a manufacturer of chips weighing in at some 14 billion dollars (12 billion euros), reports the Wall Street Journal.

In exchange after Exchange, the title Cavium took nearly 13% and the share Marvell about 6%.

According to the u.s. daily, citing sources close to the matter, the stockholders of Cavium have to be satisfied with a premium that is modest in the case of an offer.

If the discussions are unsuccessful, a deal could be announced in the coming weeks.

None of the two companies involved was not immediately available to respond to the information.

The closing price of Friday, Cavium had a market capitalization of about $ 4.5 billion, compared to more than nine billion to Marvell.

Shortly before, sources have said that Broadcom (NASDAQ:AVGO) is expected to launch a bid on its Qualcomm (NASDAQ:QCOM) as of this weekend, what could be the biggest acquisition ever made in the semiconductor industry.

This latter is a vast movement of consolidation for over a year, with each major player looking to be well placed to capture the market, sharp growth of connected devices, including cars.

(Aishwarya Venugopal in Bangalore, Benoit Van Overstraeten for the French service) OLFRBUS Reuters France Online Report Business News 20171103T222928+0000

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