Posted on Monday, February 05 2018 @ 18:56 CET by Thomas De Maesschalck
Broadcom is shifting into a higher gear by announcing a $121 billion take-over bid for Qualcomm. The previous hostile bid, of $105 billion, got rejected but now Broadcom is back with a best and final offer. The new bid of $82 per Qualcomm share represents a 50 percent premium over the price Qualcomm was trading at before news of the offer broke.
Qualcomm’s board previously rejected Broadcom’s original $105 billion acquisition approach, and has since dug in against the threat of a takeover, with Chief Executive Officer Steve Mollenkopf dismissing the bid as not being worth consideration. Qualcomm has also argued that regulators would be unlikely to quickly, if ever, approve such a combination.
Broadcom Chief Executive Officer Hock Tan is now putting pressure back on Mollenkopf and his board, who have so far refused to negotiate. By sweetening the offer, he’s also improving prospects for his nominations to Qualcomm’s board in a shareholder vote next month. A victory in that effort would void the current opposition.
Via: Bloomberg
