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Qualcomm rejects Broadcom's revised US$121 billion takeover bid

By James Lu - on 9 Feb 2018, 11:27am

Qualcomm rejects Broadcom's revised US$121 billion takeover bid

Qualcomm has officially rejected Broadcom's second buyout attempt, which valued the Snapdragon chip-maker at US$121 billion.

Qualcomm said Broadcom’s latest US$82 per share offer, comprising US$60 per share in cash and US$22 per share in stock, “materially undervalues” Qualcomm and falls short of the firm regulatory commitment it would demand given the significant antitrust risks involved.

Qualcomm however has"offered to meet with Broadcom to see if it can address the serious deficiencies in value and certainty in its proposal."

In a letter published with the statement, Qualcomm wants Broadcom to answer a few pertinent questions, including the following:

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

Qualcomm seems to be doubting Broadcomm's intentions with its take over attempts, stating in the letter that it's "indisputable that if Qualcomm entered into a merger agreement and, after an extended regulatory review period the transaction did not close, Qualcomm would be enormously and irreparably damaged."

Because of that, Qualcomm wants Broadcom to be extremely clear and specific about how far it would go, so that it can "properly evaluate the risk to Qualcomm's shareholders."

Source: Qualcomm

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