Qualcomm said its board has unanimously rejected Broadcom’s unsolicited, sweetened bid to acquire Qualcomm for $82 per share — $66 in cash and $22 in Broadcom stock.
Broadcom announced its revised bid on Feb. 5, calling it the company’s “best and final” offer. Last November, Broadcom originally offered $70 per share — the same amount of cash ($60 per share), but just $10 of Broadcom shares. Qualcomm rejected that proposal too.
Qualcomm said Broadcom’s latest bid “falls well short of the firm regulatory commitment the Board would demand given the significant downside risk of a failed transaction.”
Qualcomm also offered to meet with Broadcom to discuss “the serious deficiencies in value and certainty in its proposal.”
If such a meeting were to be arranged, Qualcomm would have Broadcom be ready to present the “true highest price” it would offer, holding that the $82 per share offer “materially undervalues Qualcomm,” and arguing that the proposal also does not ascribe value to Qualcomm’s proposed NXP acquisition. Qualcomm today extended its cash tender offer for all outstanding shares of NXP.
The companies will meet on Feb. 14, according to Reuters.