Monday, December 21, 2015

Seeking Alpha: Decision Time With Broadcom ... And Maybe With The Larger Sector

As the transaction with Avago (NASDAQ:AVGO) moves forward, Broadcom (NASDAQ:BRCM) investors have to make their decision on what to do with their shares. While shareholders may not ultimately get exactly what they want (the deal is subject to proration), they have the option to take cash, regular shares, or special restricted shares.

Investors are also looking at a changing semiconductor landscape. Barring any additional announcements before year-end, 2015 has already seen more than 25% of U.S. publicly-listed semiconductor stocks acquired or underway with being acquired. Given the rising cost of chip development, the low cost of debt and high cash balances at chip companies, and the opportunity to drive synergies, there may be more decisions like the Broadcom situation coming for investors.

Read more here:
Decision Time With Broadcom ... And Maybe With The Larger Sector

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