Qualcomm rejects Broadcom's revised acquisition offer, proposes a meeting instead

By Shawn Knight
Feb 9, 2018
Post New Reply
  1. Broadcom this week made its “best and final offer” to purchase rival chipmaker Qualcomm and for the second time in as many tries, the company came up short.

    Qualcomm on Thursday said its board unanimously rejected Broadcom’s revised acquisition offer which consisted of $60 per share in cash and $22 per share in Broadcom stock. As before, Qualcomm’s board believes the latest offer undervalues Qualcomm and “falls well short of the firm regulatory commitment the board would demand given the significant downside risk of a failed transaction.”

    Qualcomm isn’t ready to throw in the towel, however, as the company has offered to meet with Broadcom so they can explain how they would bridge the gaps in both value and deal certainty. Specifically, Qualcomm wants to know:

    • What is the true highest price at which you would be prepared to acquire Qualcomm? Is it $82 per share or is it higher?
    • Is Broadcom willing to commit to take whatever actions are necessary to ensure the proposed transaction closes?

    It’ll be interesting to see how Broadcom responds to the public letter, especially considering it said its last offer was its best and final offer. Does Broadcom want Qualcomm enough to pay more than the current $82 per share and will they be willing to back up the transaction with some sort of regulatory insurance?

    Permalink to story.

     
  2. Squid Surprise

    Squid Surprise TS Evangelist Posts: 1,880   +909

    The fact that Qualcomm is willing to talk, shows that there is an interest in selling... now it's simply negotiating... Will be interesting to see what happens with Apple if the deal does go through... Apple has been slowly going Intel with their modems, and the latest rumours have them ditching Qualcomm completely.... I wonder if a finalized deal would change that...
     

Similar Topics

Add your comment to this article

You need to be a member to leave a comment. Join thousands of tech enthusiasts and participate.
TechSpot Account You may also...