Qualcomm said its board has unanimously rejected Broadcom’s unsolicited, sweetened bid to acquire Qualcomm for $82 per share -- $60 in cash and $22 in Broadcom stock.
Broadcom announced its revised bid on February 5, calling it the company’s “best and final” offer. Last November, Broadcom originally offered $70 per share -- the same amount of cash ($60 per share), but just $10 of Broadcom shares. Qualcomm rejected that proposal too.
Qualcomm said Broadcom’s latest bid “falls well short of the firm regulatory commitment the Board would demand given the significant downside risk of a failed transaction.”
Qualcomm also offered to meet with Broadcom to discuss “the serious deficiencies in value and certainty in its proposal.”
If such a meeting were to be arranged, Qualcomm would have Broadcom be ready to present the “true highest price” it would offer, holding that the $82 per share offer “materially undervalues Qualcomm,” and arguing that the proposal also does not ascribe value to Qualcomm’s proposed NXP acquisition. Qualcomm today extended its cash tender offer for all outstanding shares of NXP.
In response, Broadcom president and CEO Hock Tan said he would welcome a meeting, and that it would be willing to rendezvous today or over the weekend, but was “astonished to hear that Qualcomm is not willing to meet until Tuesday (February 13).”
“We hope that your willingness to meet with us reflects Qualcomm's genuine intent to reach an agreement with respect to our February 5 proposal,” Tan write. “After having met with most of your largest stockholders this past week, we have no doubt that this is their strong desire as well. We urge you to meet with us without further delay, and stand ready to meet this Saturday or Sunday in New York or another mutually convenient location.”