US: Qualcomm still open to Broadcom’s negotiations

Qualcomm Inc on Friday, February 16, called a meeting with Broadcom Ltd to discuss the latter’s US$121 billion bid constructive and opened the door to more talks, but continued to reject the proposed deal between the semiconductor companies.

Qualcomm’s response raises the stakes in a battle over what would be the technology sector’s largest-ever acquisition. The two companies have less than three weeks to negotiate a potential deal until Qualcomm shareholders are asked to vote on a challenge by Broadcom to Qualcomm’s board of directors.

“While the current Broadcom proposal is unacceptable, our board is intensely focused on maximizing value for Qualcomm stockholders, whether through executing on its growth strategy or by selling the company,” Qualcomm Chairman Paul Jacobs wrote to Broadcom CEO Hock Tan on Friday in a letter released by Qualcomm.

As part of the takeover battle, Broadcom is asking Qualcomm shareholders to back its effort to replace a majority of Qualcomm’s board of directors in a vote scheduled for March 6. It has called its latest bid its best and final offer.

Broadcom has said its acquisition offer is contingent on either Qualcomm buying NXP at currently disclosed terms of US$110 per share in cash or the deal being terminated.

China’s MOFCOM is the only regulator around the world that has yet to approve the Qualcomm-NXP deal. With the start of the Chinese New Year public holiday this week, Qualcomm could potentially delay its decision on raising its offer for NXP until after the March 6 Qualcomm shareholder meeting.

Full Content: Reuters

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