The Dow Industrials Plunge: DealBook Briefing
The growth cap comes after a lackluster year for Wells, which reduced its loans 1
percent last year, compared with an increase of 3.5 percent at Bank of America.
Wells Fargo executives on Friday suggested that the cap would have limited financial impact, saying it would reduce
this year’s net profits by $300 million to $400 million, which works out at less than 2 percent of 2017’s earnings.
What Broadcom is offering:
• A takeover price of $82 a share, up from its original offer of $70
• A “significant” breakup fee if a deal were to be halted for antitrust reasons
• A “ticking fee” that Broadcom would pay in cash if a deal took more than a year to close
It said the new “best and final” offer would be withdrawn if Qualcomm either pushed its annual shareholder meeting back from
March 6 (when Broadcom hopes to unseat the entire board) or if it paid more than $110 a share for NXP Semiconductor.
Brian Kleinhanzl, a banks analyst at Keefe, Bruyette & Woods, wrote on Sunday
that the Fed’s action will “mean Wells will have a harder time maintaining market share and will have to compete more on price or credit terms versus peers,” adding, “Wells will also have to maintain the balance sheet while other banks are growing, and we view this as defensive versus peers.”
In raising its takeover bid to about $121 billion just now, Broadcom is hoping to allay concerns about its takeover bid
and its quest to create a behemoth in computer chips.