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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 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