Qualcomm proposes further price talks with Broadcom
Chipmaker Qualcomm Inc (QCOM.O) on Monday urged Broadcom Ltd (AVGO.O) to enter into price negotiations on its $117 billion offer for the company, saying the two sides had made progress on regulatory issues but were yet to agree on the deal value.
Qualcomm maintained that all of Broadcom’s previous offers materially undervalued the company and proposed they conduct mutual due diligence to look more closely at each other’s books.
In a letter to Broadcom Chief Executive Hock Tan, Qualcomm proposed arranging a meeting focused on price as soon as mutually convenient for both parties.
The letter comes ahead of a showdown on March 6, when Qualcomm shareholders are scheduled to elect an 11-member board and decide whether to hand control to a slate of six nominees put forward by Broadcom.
Broadcom cut its bid last week by 4 percent to $117 billion after Qualcomm’s decision to raise its own bid for NXP Semiconductors NV (NXPI.O) to $44 billion, a potential deal breaker for what would be the biggest ever technology merger.
Qualcomm’s shares were up nearly 3 percent at $65.18 in premarket trading on Monday, still well below Broadcom’s latest offer of $79 per share.
Qualcomm also softened its approach to Broadcom’s commitments on regulatory approval for the deal, saying the path forward did not require a ‘hell or high water’ commitment.