S&P 500 Futures Shrug Off Merkel's Woes; Marvell Buys Cavium

Futures for the S&P 500 index fell slightly Monday morning, recouping most of its overnight losses from German coalition talks breaking down. Meanwhile, Marvell Technology ( MRVL ) reached a deal to buy fellow Cavium ( CAVM ) for about $6 billion as chip takeover buzz has heated up with Broadcom ( AVGO ) making a $130 billion overture to Qualcomm ( QCOM ).

[ibd-display-video id=2701883 width=50 float=left autostart=true]S&P 500 futures lost 0.1% vs. fair value after retreating 0.3% or more overnight. Germany's Dax erased a 0.5% loss to trade 0.2% higher.

German Talks

Month-long talks on forming a new German government collapsed Sunday night, as the Free Democratic Party walked out. Merkel's Christian Democrat Party, along with Bavarian CSU sistery party, were trying to form a coalition with the Free Democrats and the Green Party.

Merkel could try to form another grand coalition with the Social Democratic Party, but SPD leaders say they aren't interested in continuing to be the junior partner.

Chip M&A

Marvell Technology will pay $40 in cash plus 2.1757 Marvell shares per Cavium share, the companies announced Monday morning. That is currently worth $84.15 a share. Cavium shares rose 7% to 81.15. Marvell was unchanged at 20.29.

The Marvell-Cavium deal come as Broadcom recently offered $130 billion for fellow wireless chipmaker Qualcomm. Qualcomm has rejected the offer as undervaluing the company. Both Broadcom and Qualcomm are suppliers to the Apple ( AAPL ) iPhone.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.