Qualcomm raises its bid for NXP, so Broadcom lowers its offer for Qualcomm (VIDEO)
After Qualcomm on Tuesday hiked its offer for auto chip producer NXP by 16% to $44 billion ($127.50 a share), Broadcom today dropped its bid for Qualcomm by 4% to $117 billion. Qualcomm, which was already complaining that the offer valued the company too low, responded by saying that the move by Broadcom made "an inadequate offer even worse." The new, lowered bid works out to $79 a share, down from the previous $82 a share bid.
Broadcomm can still end up with its target depending on the outcome of a Qualcomm stockholder vote scheduled for March 6th. Broadcom has put up a slate of 6 nominees for Qualcomm's 11-member board. If all 6 of Broadcomm's nominees win the proxy contest, the company will have the majority of Qualcomm's board seats and will be able to force the latter's board to accept its bid.
Even with a 4% cut in the size of the deal, this transaction would still be the largest ever in the tech industry. Qualcomm is known for its Snapdragon line of chipsets used by smartphone manufacturers, and Broadcom produces chips for the wireless and telecommunications industries. Including a small decline in after-hours trading, Qualcomm shares declined by 1% today to close at $63.34.
source: Reuters, WochitNews