Broadcom is expected to increase its bid for Qualcomm and include a higher compensation fee if the deal falls through in its latest attempt to win shareholder support, Reuters reported.
Sources told the news outlet Broadcom was preparing an improved offer of between $80 and $82 per share. Its previous bid stood at $60 in cash and $10 in stock per share – equating to a deal value of $130 billion including the cost of clearing debt and other fees.
Reuters did not state if the improved sum would comprise cash only, or a mix of cash and shares.
In addition to the higher price per share, Broadcom will reportedly boost the “break-up fee” attached to the deal, meaning Qualcomm will receive higher than average compensation should the deal be blocked by regulators.
Qualcomm so far dismissed Broadcom’s advances, stating the original offer undervalued the company. Its board also made a number of statements highlighting potential regulatory problems the deal could face.
Despite having its offer sharply dismissed, Broadcom has been relentless in its pursuit, making a number of strong statements in a bid to win support for a deal. Broadcom – and its affiliates – also nominated 11 candidates for Qualcomm’s board, which shareholders will vote on at an annual stockholder meeting in March. Qualcomm said the nominations were a blatant attempt by Broadcom to seize control.
The war of words continued to escalate since, as both Qualcomm’s board and Broadcom seek to persuade shareholders to vote their way.