In the wake of Qualcomm’s adjusted offering for NXP, Broadcom has likewise adjusted its unsolicited offer for Qualcomm.
Broadcom’s new offer is $79 per share ($57 in cash and $22 in Broadcom shares), down from what it had already termed its “best and final” offer of $82 per share ($60 per share in cash and $22 in Broadcom stock).
Qualcomm has already rejected that earlier bid, holding that it “materially undervalues” Qualcomm and exposes the company to “unacceptably high level or risk.”
Broadcom said it tweaked its offer to adjust for the Qualcomm board's decision to transfer $4.10 per Qualcomm share (or $6.2 billion of value) from Qualcomm stockholders to NXP stockholders.
Broadcom said the move shows that Qualcomm’s board is acting against the best interests of shareholders by “unilaterally transferring excessive value to NXP's activist stockholders.”
Broadcom said its proposal would also provide for an auto-increase of $3 in cash per Qualcomm share, for a total of $82 per Qualcomm share, if Qualcomm is unable to complete the NXP acquisition.
Broadcom’s proposal also includes an $8 billion $8 billion regulatory reverse termination fee.
Broadcom is also urging Qualcomm stockholders to vote for all six Broadcom nominees to the Qualcomm board.