Page 15 - AAA front cover_Neat
P. 15
A24
BUSINESSFriday 29 May 2015
Avago looks to grow with $37B deal for chipmaker Broadcom
BREE FOWLER to come by for smaller lap between Avago and “We believe we are in the more deeply.”
Associated Press chipmakers. Broadcom’s products. beginning stages of en- The combined company
NEW YORK (AP) — Avago Hock Tan, Avago’s presi- Tan said that the prolifera- hanced networking in the will be worth $77 billion and
Technologies is buying rival dent and chief executive, tion of high-speed data home as people use their is expected to post annual
chipmaker Broadcom in a says that the deal will make services for wireless devic- wireless devices to con- revenue of $15 billion. The
cash and stock deal worth his company the third larg- es around the world has nect to various entertain- acquisition also is expect-
about $37 billion, vastly ex- est semiconductor maker resulted in a jump in chip ment, security and comfort ed to immediately boost
panding its lineup of prod- in terms of revenue and content per wireless de- functions that are all driven Avago’s adjusted profits
ucts for the rapidly growing give it the most diversified vice, as well as a surge in by pervasive broadband and save it $750 million in
wireless device market at communications platform the amount of data traffic access,” Tan said Thursday. costs on an annual run rate
a time when sales growth in the industry, adding running through data cen- “This acquisition will al- basis 18 months after the
has otherwise been tough that there is very little over- ters. low us to access this trend deal closes.q
Wall Street treads lightly awaiting Greece debt deadline
Trader Ryan Falvey, right, works on the floor of the New York Stock Exchange. U.S. stocks fell billion deal. Avago rose point, I think we’re likely
89 cents, or 1 percent, to looking at Greece leaving
slightly Thursday, following a sell-off in the Chinese market and continued worries about the $142.38. Broadcom fell the eurozone.”
91 cents, or 2 percent, to In European markets,
approaching debt payment deadline for cash-starved Greece. (AP Photo/Richard Drew) $56.25. Both stocks had Greek stocks fell 1.7 per-
jumped sharply Wednes- cent. Germany’s DAX lost
KEN SWEET ing less than 100 points points, or 0.2 percent, to day — Broadcom by 22 0.8 percent, France’s CAC-
AP Business Writer throughout the session. En- 18,126.12. The Standard percent and Avago by 8 40 lost 0.9 percent and the
NEW YORK (AP) — U.S. ergy and industrial stocks & Poor’s 500 index edged percent — on rumors those U.K.’s FTSE 100 index rose
stocks fell slightly Thursday, were among the biggest down 2.69 points, or 0.1 companies were in talks. 0.1 percent.
following a sell-off in the decliners. Most inves- percent, to 2,120.79 and In Greece, progress in talks Along with Greece’s debt
Chinese market and con- tors are in “wait and see” the Nasdaq composite lost between that country problems, investors are
tinued worries about the mode regarding Greece 8.62 points, or 0.2 percent, and its creditors is unclear. looking for insight into
approaching debt pay- and the Federal Reserve, to 5,097.98. Greece said it expected when the Fed might start
ment deadline for cash- which is weighing when to In corporate news, chip- to reach a deal to get raising interest rates. The
starved Greece. begin raising interest rates. makers Avago Tech- more bailout loans in time central bank is expected
The overall market was The Dow Jones industrial nologies and Broadcom to make a key debt pay- to increase rates as early
quiet, with the Dow mov- average slipped 36.87 agreed to merge in a $37 ment on June 5. Its credi- as September, but the
tors were quick to temper bank’s policymakers say
expectations. any increase will depend
Greece said it aims to on how the U.S. economy
clinch a deal by Sunday, is doing.
which would allow it to re- Investors were also un-
ceive the much needed nerved but a sell-off in Asia.
final installment of its inter- China’s Shanghai Com-
national bailout and avoid posite sank 6.5 percent.
a default. Stock market commenta-
Greece has given investors tor Hexun attributed the fall
a headache for years now, to several factors, includ-
and many are skeptical ing brokerages tightening
that this round of talks will lending to individual inves-
resolve any of the coun- tors, selling by speculators
try’s debt issues. and a Chinese sovereign
“They’re likely to kick the wealth fund selling shares
can down the road as they in two state banks.
have been,” said Scott Despite an economic slow-
Wren, a market strategist down in China, the index
with Wells Fargo. “At this has gained 40 percent in
Etihad Airways profit jumps by over half to $73 million
ADAM SCHRECK bought up stakes in several cargo through their growing in Europe and the U.S.,” That increase was helped
Associated Press foreign carriers that help Gulf hubs. U.S. airlines have he said. “These attempts by a 22-percent jump in
DUBAI, United Arab Emir- drive traffic through its Abu criticized the carriers, saying to limit competition are passenger numbers to 14.8
ates (AP) — Etihad Airways, Dhabi hub, said its earnings they are distorting the mar- detrimental to consumer million as the airline contin-
the United Arab Emirates’ rose 52 percent over the ket by benefiting from unfair choice. They threaten to ued to add capacity with
fast-growing national car- $48 million its stand-alone state subsidies — a charge damage the significant the addition of new planes.
rier, said Thursday its profit airlinebusiness earned the the Gulf airlines deny. progress that our airline has The carrier also grew its
rose by more than half to previous year. It was the President and CEO James made in offering improved route network in 2014,
$73 million last year but airline’s fourth year of prof- Hogan cited that opposi- travel connections, product launching services to 10
warned that “aggressive itability. Etihad and rivals tion as an “unprecedent- and service standards and new destinations, including
protectionist sentiment” in Qatar Airways and Dubai- ed” challenge. value for money.” tourist hotspots like Rome
the West threatens its future based Emirates are rapidly “Of particular concern has Etihad’s revenue for the and Phuket, Thailand, as
prospects. The government- expanding, funneling main- been the rise in aggres- year increased to $7.6 bil- well as Los Angeles, Dallas
backed airline, which has ly long-haul passengers and sive protectionist sentiment lion from $6 billion in 2013. and San Francisco.q
BUSINESSFriday 29 May 2015
Avago looks to grow with $37B deal for chipmaker Broadcom
BREE FOWLER to come by for smaller lap between Avago and “We believe we are in the more deeply.”
Associated Press chipmakers. Broadcom’s products. beginning stages of en- The combined company
NEW YORK (AP) — Avago Hock Tan, Avago’s presi- Tan said that the prolifera- hanced networking in the will be worth $77 billion and
Technologies is buying rival dent and chief executive, tion of high-speed data home as people use their is expected to post annual
chipmaker Broadcom in a says that the deal will make services for wireless devic- wireless devices to con- revenue of $15 billion. The
cash and stock deal worth his company the third larg- es around the world has nect to various entertain- acquisition also is expect-
about $37 billion, vastly ex- est semiconductor maker resulted in a jump in chip ment, security and comfort ed to immediately boost
panding its lineup of prod- in terms of revenue and content per wireless de- functions that are all driven Avago’s adjusted profits
ucts for the rapidly growing give it the most diversified vice, as well as a surge in by pervasive broadband and save it $750 million in
wireless device market at communications platform the amount of data traffic access,” Tan said Thursday. costs on an annual run rate
a time when sales growth in the industry, adding running through data cen- “This acquisition will al- basis 18 months after the
has otherwise been tough that there is very little over- ters. low us to access this trend deal closes.q
Wall Street treads lightly awaiting Greece debt deadline
Trader Ryan Falvey, right, works on the floor of the New York Stock Exchange. U.S. stocks fell billion deal. Avago rose point, I think we’re likely
89 cents, or 1 percent, to looking at Greece leaving
slightly Thursday, following a sell-off in the Chinese market and continued worries about the $142.38. Broadcom fell the eurozone.”
91 cents, or 2 percent, to In European markets,
approaching debt payment deadline for cash-starved Greece. (AP Photo/Richard Drew) $56.25. Both stocks had Greek stocks fell 1.7 per-
jumped sharply Wednes- cent. Germany’s DAX lost
KEN SWEET ing less than 100 points points, or 0.2 percent, to day — Broadcom by 22 0.8 percent, France’s CAC-
AP Business Writer throughout the session. En- 18,126.12. The Standard percent and Avago by 8 40 lost 0.9 percent and the
NEW YORK (AP) — U.S. ergy and industrial stocks & Poor’s 500 index edged percent — on rumors those U.K.’s FTSE 100 index rose
stocks fell slightly Thursday, were among the biggest down 2.69 points, or 0.1 companies were in talks. 0.1 percent.
following a sell-off in the decliners. Most inves- percent, to 2,120.79 and In Greece, progress in talks Along with Greece’s debt
Chinese market and con- tors are in “wait and see” the Nasdaq composite lost between that country problems, investors are
tinued worries about the mode regarding Greece 8.62 points, or 0.2 percent, and its creditors is unclear. looking for insight into
approaching debt pay- and the Federal Reserve, to 5,097.98. Greece said it expected when the Fed might start
ment deadline for cash- which is weighing when to In corporate news, chip- to reach a deal to get raising interest rates. The
starved Greece. begin raising interest rates. makers Avago Tech- more bailout loans in time central bank is expected
The overall market was The Dow Jones industrial nologies and Broadcom to make a key debt pay- to increase rates as early
quiet, with the Dow mov- average slipped 36.87 agreed to merge in a $37 ment on June 5. Its credi- as September, but the
tors were quick to temper bank’s policymakers say
expectations. any increase will depend
Greece said it aims to on how the U.S. economy
clinch a deal by Sunday, is doing.
which would allow it to re- Investors were also un-
ceive the much needed nerved but a sell-off in Asia.
final installment of its inter- China’s Shanghai Com-
national bailout and avoid posite sank 6.5 percent.
a default. Stock market commenta-
Greece has given investors tor Hexun attributed the fall
a headache for years now, to several factors, includ-
and many are skeptical ing brokerages tightening
that this round of talks will lending to individual inves-
resolve any of the coun- tors, selling by speculators
try’s debt issues. and a Chinese sovereign
“They’re likely to kick the wealth fund selling shares
can down the road as they in two state banks.
have been,” said Scott Despite an economic slow-
Wren, a market strategist down in China, the index
with Wells Fargo. “At this has gained 40 percent in
Etihad Airways profit jumps by over half to $73 million
ADAM SCHRECK bought up stakes in several cargo through their growing in Europe and the U.S.,” That increase was helped
Associated Press foreign carriers that help Gulf hubs. U.S. airlines have he said. “These attempts by a 22-percent jump in
DUBAI, United Arab Emir- drive traffic through its Abu criticized the carriers, saying to limit competition are passenger numbers to 14.8
ates (AP) — Etihad Airways, Dhabi hub, said its earnings they are distorting the mar- detrimental to consumer million as the airline contin-
the United Arab Emirates’ rose 52 percent over the ket by benefiting from unfair choice. They threaten to ued to add capacity with
fast-growing national car- $48 million its stand-alone state subsidies — a charge damage the significant the addition of new planes.
rier, said Thursday its profit airlinebusiness earned the the Gulf airlines deny. progress that our airline has The carrier also grew its
rose by more than half to previous year. It was the President and CEO James made in offering improved route network in 2014,
$73 million last year but airline’s fourth year of prof- Hogan cited that opposi- travel connections, product launching services to 10
warned that “aggressive itability. Etihad and rivals tion as an “unprecedent- and service standards and new destinations, including
protectionist sentiment” in Qatar Airways and Dubai- ed” challenge. value for money.” tourist hotspots like Rome
the West threatens its future based Emirates are rapidly “Of particular concern has Etihad’s revenue for the and Phuket, Thailand, as
prospects. The government- expanding, funneling main- been the rise in aggres- year increased to $7.6 bil- well as Los Angeles, Dallas
backed airline, which has ly long-haul passengers and sive protectionist sentiment lion from $6 billion in 2013. and San Francisco.q
