Broadcom Drops Offer for Qualcomm to $117B
Broadcom has decreased the amount it is offering to pay for Qualcomm, in reaction to the chipmaker raising its bid for NXP.
Broadcom Corp. (Nasdaq: BRCM) dropped its offer from $121 billion -- or $82 a share -- to $117 billion, or $77 a share, on Wednesday. This is because Qualcomm Inc. (Nasdaq: QCOM) upped its bid for NXP from $39 billion to $44 billion this week. (See Qualcomm Ups NXP Bid, Angers Broadcom.)
Broadcom Corp. (Nasdaq: BRCM) had specifically stipulated that Qualcomm not raise its bid for NXP, when Broadcom increased its offer for the San Diego-based chipmaker from $105 billion to $121 billion on February 5. (See Broadcom Raises Offer for Qualcomm to $121B.)
"Broadcom remains confident that Qualcomm's stockholders will continue to support its proposal to acquire Qualcomm, and looks forward to concluding a transaction with this Qualcomm board of directors, or the newly elected Qualcomm board following its annual meeting on March 6, 2018," Broadcom said in a statement.
"Broadcom's reduced proposal has made an inadequate offer even worse despite the clear increase in value to Qualcomm stockholders from providing certainty around the NXP acquisition," Qualcomm sniped back.
All of this will shake out at the March 6 Qualcomm shareholder meeting.
— Dan Jones, Mobile Editor, Light Reading