Now, now, Qualcomm... Don't play hard to get, grins Broadcom
Once again, a rich powerful entity forgets that no means no
Broadcomm says it will continue its efforts to acquire rival chip designer Qualcomm despite a unanimous rejection of its $103bn buyout offer.
Shortly after Qualcomm issued its statement on Monday turning down the $70-per-share bid, Broadcomm fired back almost immediately with an announcement of its own maintaining that its offer was the best the embattled Qualcomm could hope to get.
"We continue to believe our proposal represents the most attractive, value-enhancing alternative available to Qualcomm stockholders and we are encouraged by their reaction," Broadcom CEO Hock Tan said of the offer.
"Many have expressed to us their desire that Qualcomm meet with us to discuss our proposal."
This comes after Qualcomm said that the nine men and two women in its board of directors had all agreed that the offered buyout package sorely undervalued Qualcomm's share value and its future growth prospects. They also noted the regulatory hurdles that would face any effort to tie up two of the world's largest semiconductor manufacturers.
Broadcomm, however, says it will stick with the touted package that, including debt relief and other terms, would see the biz spend $130bn in total. Qualcomm investors would get a $60 payment and $10 of equity in Broadcom for every share of Qualcomm stock they own.
Broadcom execs believe that, even if Qualcomm's board doesn't like the deal, they can convince enough of the company's shareholders to take the offer and win approval from government regulators.
"This transaction will create a strong, global company with an impressive portfolio of industry-leading technologies and products, and we have received positive feedback from key customers about this combination," said Tan.
"It remains our strong preference to engage cooperatively with Qualcomm's Board of Directors and management team." ®