Qualcomm’s board of directors has confirmed receipt of the revised offer and says it plans to review the document in accordance with its fiduciary duties.
Broadcom said its offer is contingent on Qualcomm completing its proposed purchase of NXP for $110 per share, or terminating that transaction.
Under the terms of the final deal, Qualcomm stockholders will gain $60 in cash and the remainder, $22, in Broadcom stock, which equates to approximately $146 billion together with the assumption of $25 billion in net debt from Qualcomm.
On the Qualcomm side, the deal would follow swiftly on from Qualcomm’s own billion acquisition of NXP Semiconductors (formerly Philips Semiconductors, which only acquired Freescale Semiconductors in 2015). If this new rumor is right, Broadcom will announce the higher offer on Monday. So on Monday, when Broadcom upped its offer to $82 a share, a lofty level that Qualcomm has only reached in three days out of its entire 26-year history as a public company, investors surely would be more interested? Broadcom and Qualcomm did not immediately respond to a request for comment. The acquiring company intends to replace Qualcomm’s board of directors with its own nominees at the March 6 shareholders meeting.
Broadcom also said it is prepared to pay a significant termination fee if the deal can not obtain the required government regulatory approvals.
Broadcom’s chase after Qualcomm didn’t end when its historical 0 billion offer to acquire the San Diego-based chip maker was rejected in November. Since then, Qualcomm has taken actions, including increasing employee severance pay, created to make a deal less palatable to Broadcom.
Year to date (YTD) refers to the period beginning the first day of the current calendar or fiscal year up to the current date.
It said it is on the cusp of breaking into new markets for products such as servers, personal computers and autos, putting it on a path to becoming a much bigger company. It criticized the people that Broadcom and Silver Lake Partners had wanted to put on its board, saying that they were conflicted and had no skills or expertise to offer. During the same quarter in the previous year, the company posted $3.47 earnings per share. sell-side analysts forecast that Broadcom Ltd will post 17.14 EPS for the current year. Broadcom said there was no reason to believe Qualcomm’s latest initiative would be successful. By sweetening the deal, Broadcom CEO Hock Tan is putting additional pressure on Qualcomm CEO Steve Mollenkopf and the company’s board, who have so far simply refused to negotiate.