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M&A Head Scratcher: Broadcom’s CA Buy ‘Makes Little Sense’
Four months after President Trump stopped its Qualcomm acquisition, Broadcom now is making an $18.9 billion bid for CA Technologies in a deal that one analyst says makes little sense.
In response to the news, Broadcom lost $19 billion in market value as its stock plunged 19 percent to $197.50 — the company’s worst day ever, according to a Reuters report.
Channel Partners contributor Michael Finneran, of dBrn Associates, said when he initially heard about the deal he was confused because of the “total lack of synergy between the two parties” and after further consideration, “it makes even less sense.”
Read the full article here.