After being turned down once already, Broadcom is reportedly now looking to raise its offer to buy rival Qualcomm.
According to Reuters, Broadcom is set to offer up more of its stock, after consultation with Qualcomm’s top shareholders, in an attempt to make the bid more appealing.
The report says there is still no timeframe to the offer, but the intention is clear – Broacom wants to ‘apply pressure on Qualcomm to engage in negotiations’.
Broadcom’s CEO Hock Tan recently said he is willing to fight for the takeover, and Reuters claims the company is getting ready to submit a slate-of-directors by Qualcomm’s nomination deadline – December 8.
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 Qualcomm to be sold.
Qualcomm builds chips for carrier networks, allowing them to offer end clients broadband and mobile data. According to Reuters, it is currently trying to acquire NXP Semiconductors NV, an automotive chipmaker. The deal was signed in October 2016. It is also battling patent infringements with Apple.
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