With Qualcomm Inc. rejecting Broadcom's latest offer, the latter urged the San Diego wireless technology giant late Feb. 8 to come to the negotiating table immediately, suggesting a weekend meeting in New York or a mutually convenient location.
Broadcom (Nasdaq: AVGO) increased its bid for Qualcomm on Feb. 5, offering $121 billion. Broadcom’s original bid came in November.
Qualcomm spurned the latest bid, saying it undervalued the company and questioning whether that was really Broadcom’s final offer but also said it was open to a discussion.
Broadcom said its $82 per share offer is its best and final offer, and made public a draft merger deal. The agreement is available online at www.AVGO-QCOM.com. It pushed aside Qualcomm’s stated concern that international regulators would oppose the merger.
Qualcomm (Nasdaq: QCOM) filed a statement with securities regulators late Feb. 8, indicating its reservations with Broadcom’s latest bid, and asserting that two of its customers — both representing more than $1 billion of work — said they would take their business elsewhere if Broadcom takes charge of Qualcomm.
“… two customers providing Qualcomm chipset revenues in excess of $1 billion each per year have stated that they are likely to move designs away from Qualcomm in the event that this transaction moves forward,” the statement said. “This is due to their lack of confidence in Broadcom’s ability to continue to lead in technology.”
Broadcom said it has strong support from Qualcomm stockholders for the acquisition plan.