Qualcomm, Broadcom discuss acquisition offer

NEW YORK: Qualcomm Inc said it met with Broadcom Ltd to discuss the latter’s revised $121 billion bid, the first time the chipmakers have discussed what would be the technology sector’s largest ever acquisition. The outcome of the meeting will determine whether Qualcomm, which has resisted Broadcom’s takeover approach since November, will engage in negotiations or continue to defend itself by rallying its shareholders, who are scheduled to vote on March 6 on replacing the majority of its board with Broadcom nominees.
Neither side commented on what transpired in the two-hour meeting. Qualcomm said in its statement its board would meet to determine its next steps. Broadcom’s top executives left the meeting with the impression that their Qualcomm counterparts listened to them but did not engage, according to sources familiar with the matter who asked not to be identified because it was private.
The meeting came after Qualcomm rejected Broadcom’s revised cash-and-stock bid of $82 per share last week and said the new offer still undervalued it and fell well short of the firm commitments on regulatory issues it expected.
Qualcomm had said it would take the meeting to allow Broadcom to explain how it would attempt to bridge the gaps in both value and deal certainty and to better understand the issues that remained unaddressed in its proposal.
Qualcomm said last week that Broadcom’s plan to address antitrust concerns by selling two Qualcomm businesses, its Wi-Fi networking processors and RF Front End chips for mobile phones, was inadequate to allay concerns that the deal would not win regulatory approval. — Reuters