Broadcom (BRCM) agrees to buy LTE-related assets from affiliates of Renesas Electronics (RNECF.PK, RNECY.PK) for about $164M in cash. The transaction is expected to slice about $0.12 from EPS in the December quarter and $0.10-$0.15 from EPS for FY2014. The purchase is expected to be accretive to earnings in 2015.
Updating its outlook for the September quarter, the company expects revenue of $2.075B-$2.175B (Street consensus is $2.14B), and gross margins to be up about 50-100 basis points. R&A and SG&A expenses are expected to be "somewhat above" the high end of previous guidance.
Japanese state-backed investment fund Innovation Network is in talks with major manufacturers - reportedly including Toyota (TM) and Panasonic (PC) - about acquiring struggling chipmaker Renesas, which is the subject of a bid of over ¥100B ($1.3B) from KKR. The Japanese government fears that KKR would "cut off the less-profitable operations" that are important for Japanese end users.