Qualcomm rejects current Broadcom offer, but is ‘open to further discussions’

While Qualcomm believes Broadcom’s current acquisition proposal is unacceptable, it’s “open to further discussions.”

“Our Board is intensely focused on maximizing value for Qualcomm stockholders, whether through executing on its growth strategy or by selling the Company,” wrote Qualcomm’s chairman of the board Paul E. Jacobs in a public letter to Hock Tan, president and CEO of Broadcom.

However, Qualcomm felt that in the two companies’ Valentine’s Day meeting, Broadcom continued to resist agreeing to certain commitments that might be required by government regulatory bodies like the FTC and the European Commission.

According to Qualcomm, Broadcom also declined to respond to questions about its intentions for Qualcomm’s licensing business, making it “very difficult to protect the antitrust-related remedies that might be required.”

The San Diego-based chipset manufacturer also reiterated that it felt the $121 billion price tag materially undervalued its business.

Ultimately, Qualcomm stated that if Broadcom couldn’t raise its offer — which Broadcom previously said was its “best and final” — and guarantee a higher level of deal certainty, it felt confident in its ability to “deliver superior near- and long-term value to its stockholders.”

If Qualcomm and Broadcom can’t come to an agreement — which at this point seems unlikely — much will hinge on Broadcom’s board takeover attempt at the March 6th annual stockholder meeting.

Broadcom nominated a slate of its own board of director nominees in opposition to Qualcomm’s nominations. Qualcomm has repeatedly asked stockholders to vote for its own selections.

If successful, the acquisition would be the largest in tech history.

Qualcomm has been resisting the acquisition attempt since Broadcom proposed a $103 billion purchase in November 2017.

Source: Qualcomm