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US: Qualcomm rejects Broadcom’s “best and final” US $121 billion bid

By  |  February 8, 2018

On Thursday, February 8, US semiconductor company Qualcomm rejected Broadcom’s revised US$121 billion buyout offer, but proposed meeting its peer to see whether they can address what it called the bid’s “serious deficiencies in value and certainty.”

Qualcomm’s response attempts to strike a balance between continuing to resist Broadcom’s takeover attempt and heeding the calls of some Qualcomm shareholders, who urged the company in recent days to engage with its rival in case it can clinch an attractive deal.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.

“Your proposal is inferior relative to our prospects as an independent company and is significantly below both trading and transaction multiples in our sector,” Chairman Paul Jacobs wrote in an open letter to Broadcom’s Tan.

Full Content: Bloomberg

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