Jul
12

Broadcom Shares Sink as Latest Deal Puzzles Wall Street

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CEO Hock Tan’s $18.9 billion purchase of software company CA is deviation from previous acquisitions

Broadcom Inc. shares fell nearly 14% on Thursday, showing the challenge Chief Executive Hock Tan faces in persuading investors that his $18.9 billion purchase of the software company CA Technologies makes sense for the chip giant.

The deal, announced late Wednesday, was a surprise even for observers familiar with Mr. Tan’s long history of acquisitions. The CEO built Broadcom into a chip powerhouse largely by acquiring companies. He keeps the parts he desires, wringing efficiencies out of the them, and sheds the rest..

Broadcom Shares Sink as Latest Deal Puzzles Wall Street

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Categories : Finance, Wall Street

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