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Broadcom to increase Qualcomm bid

(Image credit: Image Credit: Jejim / Shutterstock)

Broadcom is upping the ante for its hostile takeover of Qualcomm, according to reports claiming that a new bid $120 billion (£85 billion) bid is being prepared.

That would put the offer at roughly $80 per share, a significant increased from the last offer - $70 per share. That $70 offer was made up of $60 per share in cash and $10 in stock.

Reuters (opens in new tab) is saying Broadcom is looking to put additional pressure on Qualcomm ahead of the shareholder meeting, scheduled to take place on March 6. At that meeting, Broadcom will look to replace the company’s board of directors.

It was also said that the deal includes a high breakup fee, in case the regulator declines the deal.

In late November 2017, Broadcom’s CEO Hock Tan said he is willing to fight for the takeover.

In early November, news broke out that Qualcomm unanimously rejected Broadcom’s $130bn offer. “It is the Board’s unanimous belief that Broadcom’s proposal significantly undervalues Qualcomm relative to the Company’s leadership position in mobile technology and our future growth prospects,” said Paul Jacobs, Qualcomm executive chairman.

“No company is better positioned in mobile, IoT, automotive, edge computing and networking within the semiconductor industry.  We are confident in our ability to create significant additional value for our stockholders as we continue our growth in these attractive segments and lead the transition to 5G,” added Steve Mollenkopf, Qualcomm CEO.

Qualcomm’s shareholders have indicated to Broadcom they expect at least $80 per share in order for anny deal to happen.

Image Credit: Jejim / Shutterstock

Sead Fadilpašić
Sead Fadilpašić

Sead Fadilpašić is a freelance tech writer and journalist with more than 17 years experience writing technology-focussed news, blogs, whitepapers, reviews, and ebooks. And his work has featured in online media outlets from all over the world, including Al Jazeera Balkans (where he was a Multimedia Journalist), Crypto News, TechRadar Pro, and IT Pro Portal, where he has written news and features for over five years. Sead's experience also includes writing for inbound marketing, where he creates technology-based content for clients from London to Singapore. Sead is a HubSpot-certified content creator.