Reports surfaced on Wednesday that Broadcom is considering increasing its offer for Qualcomm. As it stands, Broadcom’s offer is valued at $103bn, excluding debt, and consists of $60 in cash and $10 worth of Broadcom shares for each Qualcomm share owned. According to reports from Qualcomm’s shareholders, the group requires at least $80 per share from Broadcom to sell their shares. In return, Broadcom has now indicated it may sweeten its offer by including more of its own stock. Qualcomm’s shares increased by 2.19% by the close, helped along by the possibility of a sweetened offer, while Broadcom shed 0.44% to settle at $275.37 per share.
In currencies, the rand endure a choppy session, with a number of noteworthy events taking place. In the afternoon the South African Reserve Bank announced that it would be keeping interest rates on hold for the time being. As a result, the repo rate will remain at 6.75%, while the prime rate will stay at 10.25%. Later on, Fitch announced that it would be keeping South Africa’s credit rating at BB+, with a stable outlook. Investors will now be waiting on both S&P Global Ratings and Moody’s to see whether they will also downgrade SA’s credit rating to junk status later today. After a previous close of R13.82/$ on Wednesday, the rand was at just above R13.88/$ this morning.
Asian markets are mostly lower, with the exception of the Hang Seng. The Shanghai Composite featured as the worst performer, down 0.59%, with the index extending yesterday’s 2.29% slump. The drop on Thursday was mainly due to liquidity concerns. Meanwhile, the Japanese Nikkei lost 0.26% to 22,464.81 index points, on track to end lower for the first time in three sessions. The Australian ASX shed 0.22%, negatively affected by a drop in industrials. Lastly, the Hang Seng was one of the few indices to trade higher this morning, up 0.12%, with the index set to resume its recent winning streak.
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