Qualcomm Rejects Broadcom's Latest Acquisition Offer, But Leaves Door Open
Qualcomm's board of directors today unanimously rejected Broadcom's revised bid to acquire the company for $121 billion. Qualcomm's board continues to insist that Broadcom is undervaluing Qualcomm's overall worth. Further, Broadcom has not explained how it will address the potential loss of shareholder value should the acquisition fail. However, Qualcomm said its board of directors is open to meeting with Broadcom's board to discuss the offer and how Broadcom might "bridge these gaps in both value and deal certainty." Specifically, Qualcomm want's to know "the true highest price" that Broadcom might be willing to pay. Broadcom initially offered $60 per share, but raised the bid to $82 per share. Further, Qualcomm says the offer doesn't account for Qualcomm's in-progress acquisition of NXP, which would add value to the company. Qualcomm called Broadcom's proposal "inferior relative to our prospects as an independent company." Qualcomm also wants to know that Broadcom is "willing to commit to take whatever actions are necessary to ensure the proposed transaction closes." For example, Broadcom will need to demonstrate that it can help the deal clear shareholder and regulatory hurdles, not to mention account for the differences in the two firms' business models. Qualcomm said other questions for Broadcom would be on the table, though it declined to specify what they might address. Broadcom first made an offer for Qualcomm in November 2017 and revised its offer earlier this week.
Feb 16, 2018
Qualcomm today said Broadcom's acquisition offer simply isn't good enough as currently proposed. The companies met earlier this week to go over some of the finer points of Broadcom's $121 billion bid to purchase Qualcomm, and Qualcomm still came away leery that the deal won't work out.
Dec 22, 2017
Qualcomm today said it won't entertain the idea of replacing its board of directors with substitutes nominated by Broadcom. Earlier this month, Broadcom nominated 11 people to Qualcomm's board of directors.
Feb 22, 2018
Broadcom revised its offer to acquire Qualcomm downward by $3 per share after Qualcomm increased its own bid to buy NXP Semiconductors. Broadcom said, "Qualcomm's board acted against the best interests of its stockholders by unilaterally transferring excessive value to NXP's activist stockholders." Broadcom would have preferred to see Qualcomm act together with Broadcom to broker the right deal for NXP while still allowing Broadcom to move forward with its own offer to buy Qualcomm.
Dec 4, 2017
Broadcom today suggested Qualcomm's shareholders elect an entirely new board of directors during the latter's planned annual shareholder meeting on March 6, 2018. Broadcom took the opportunity to nominate 11 people to replace Qualcomm's board.