Economy

Qualcomm, Broadcom hold talks over revised US$121 billion bid

Qualcomm, Broadcom hold talks over revised US$121 billion bid

According to Broadcom, electing a majority of new board members is the only way for Qualcomm stockholders to obtain the benefit of Broadcom's best and final offer for Qualcomm of $82 per share, which will be withdrawn following the determination of results at the 2018 Annual Meeting unless Broadcom has entered into a definitive agreement to acquire Qualcomm or Broadcom's six independent nominees are elected.

Yesterday, Broadcom revealed it had all the funding in place via a gargantuan credit facility spanning multiple financiers, and rumors abound that the two companies are scheduled to meet this week to discuss the proposed transaction.

The company's board has twice rejected Broadcom's offers, but agreed to meet after the last rejection, with Jacobs asking in the rejection letter if Broadcom was willing to pay a higher price. Apple and Qualcomm are now locked in a bitter legal dispute. Other clients include Huawei Technologies, LG Electronics, Oppo, Sony Corp, Vivo and Xiaomi, all of which make smartphones.

Broadcom said it would withdraw its offer if it was not accepted by Qualcomm's executives or unless its six nominees were elected at the shareholder meeting.

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In the filing on Friday, Qualcomm also raised concerns about potential antitrust issues and said Broadcom would damage, if not destroy, its licensing business that is valued at over $4 billion. Tan is the guy who stated: "I am kind of frugal guy" for the $121B acquisition proposal and told CNBC that he doesn't want to control Qualcomm's board but praised on Qualcomm technology value.

"Broadcom completely ignores the reality that in the last five years, several large, complex worldwide mergers involving multiple regulators have taken over 18 months". China top six smartphone OEMs said that they would not be happy about needing to start things over and that they are happy with the way things are with Qualcomm.

Separately on Friday, Qualcomm said it extended the cash tender offer to buy NXP Semiconductors NV by two weeks to February 23.

Broadcom had initially made a US$103 billion offer for Qualcomm in early November.