Broadcom lowered its offer for Qualcomm after the latter raised its bid for acquisition target NXP Semiconductors earlier in the week.
In a statement, Broadcom said it would pay $79 per share for Qualcomm, comprising $57 in cash and $22 in Broadcom stock, if the NXP acquisition goes through. While the figure is $3 lower than a “best and final” offer Broadcom presented to Qualcomm earlier in February, Broadcom said it would be willing to pay the full $82 price if Qualcomm’s acquisition of NXP falls through.
Broadcom said its decision was based on Qualcomm’s move to raise its bid for NXP from $110 per share to $127.50 per share in light of pressure from shareholders who deemed Qualcomm’s original offer too low.
The new deal lowered the threshold for Qualcomm to gain control of the company from 80 per cent of shares to 70 per cent of shares, but Broadcom alleged Qualcomm’s move amounted to a betrayal of its shareholders because the chip company did not “work with Broadcom on the NXP transaction and negotiate the sale of Qualcomm to Broadcom.”
Broadcom accused Qualcomm’s board of acting “against the best interests of its stockholders by unilaterally transferring excessive value to NXP’s activist stockholders.”
The company’s continued campaign against Qualcomm comes ahead of the latter’s annual general meeting on 6 March, at which time Broadcom is hoping to secure six seats on Qualcomm’s 11-member board.