Singapore-based semiconductor maker Avago Technologies Ltd. announced a deal to buy fellow chipmaker Broadcom Corp. in a cash and stock deal valued at $37 billion. Under terms of the deal, which is expected to close in the first quarter of 2016, Avago will pay $17 billion in cash and the equivalent of $20 billion worth of Avago's ordinary shares. Broadcom shareholders can elect to receive $54.50 a share in cash, 0.4378 ordinary shares of a newly-formed Singapore-based holding company or a combination of both. The cash offer represents a 4.7% discount to Broadcom's closing price on Wednesday. Broadcom's stock soared 21% on Wednesday and Avago's jumped 7.8% after The Wall Street Journal reported the Broadcom was in advanced talks to be acquired by Avago. Broadcom and Avago shares are currently halted for news dissemination, and are scheduled to resume trading at 7:30 a.m. Eastern.
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