Qualcomm rejects Broadcom's increased offer of $121 billion United States dollars
- Author: Anthony Vega Feb 10, 2018,
Feb 10, 2018, 2:53
However, Qualcomm's second rejection of Broadcom's approach might put the verdict in shareholders hands, who are likely to vote on March 6th on whether to change the smartphone-chip maker's board with Broadcom's personalcandidates. The $47 billion deal awaits final regulatory approval.
Qualcomm's board unanimously rejected Broadcom's original offer, worth about $105 billion, last November.
"Broadcom has long sought a meeting to discuss Broadcom's acquisition of Qualcomm", Broadcom's Hock Tan wrote in his letter. And if it happens, both parties should be ready for significant regulatory hurdles.
This deal is going to be a big one, and it is possible that it could be broken up. Although the acquisition isn't final, the European authorities have given it the green light.
Qualcomm has been making the tech headlines quite often. Once that happens, Qualcomm will need to negotiate with a group of funds that have taken a position in the Dutch company's stock, demanding a boost to the US$110-a-share price agreed to by NXP's board. This makes things interesting in the semiconductor arena.
Ahead of the meeting, Broadcom sent a proposed merger agreement to Qualcomm.
But suppose the deal actually happens, it remains unclear whether it will even go through. And, things should stay that way as they are now.
Broadcom could continue its attempt to replace Qualcomm's 11 board members with its own directors.
He also hinted at whether $82 per share is really Broadcom's highest offer, and how close Broadcom is to achieving a deal.
Jacobs was quick to point out that the offer "raises more questions than it answers" and it fails to address the planned takeover by Qualcomm of the Dutch manufacturer NXP.
"We urge you to meet with us without further delay, and stand ready to meet this Saturday or Sunday in NY or another mutually convenient location", Tan wrote, hammering the point home with the closing: "We look forward to meeting with you promptly".
"We urge you to meet with us without further delay, and stand ready to meet this Saturday or Sunday in NY or another mutually convenient location", Tan said in a letter to Qualcomm chairman Paul Jacobs. This is extremely important to value preservation for our shareholders.