Qualcomm’s board remained adamant a Broadcom takeover offer of $82 per share is too low and risky to entertain, but added it is open to continued discussions if Broadcom can come up with better terms.
In a letter to Broadcom president and CEO Hock Tan sent today (16 February), Qualcomm’s board described a meeting of top executives at both companies earlier this week as “constructive”. During the meeting, Qualcomm said Broadcom “expressed a willingness to agree to certain antitrust-related divestitures” not contained in the publicly filed bid.
However, Broadcom reportedly refused to commit to other measures which might be required by global regulatory bodies reviewing the transaction. The company also declined to answer questions about its plan to overhaul Qualcomm’s licensing business, but sought control over “all material decisions” in the division in the time between signing and potential closing, Qualcomm said.
In the wake of the discussion, Qualcomm determined the $8 million breakup fee proposed by Broadcom “does not come close” to compensating for the risks associated with the proposed transaction.
Still, the US-based chipmaker left the door open for negotiations to continue: “Our Board is open to further discussions with Broadcom to see if a proposal that appropriately reflects the true value of Qualcomm shares, and ensures an appropriate level of deal certainty, can be obtained.”
If not, Qualcomm said it will continue to execute on its growth strategy as planned.