Broadcom cuts offer for Qualcomm
Broadcom Corp yesterday fired its latest salvo against Qualcomm Inc by lowering its takeover offer to US$117 billion from US$121 billion, a day after the US chipmaker increased its own offer for NXP Semiconductors NV.
Broadcom’s previous US$82 per share offer for Qualcomm was contingent on it buying NXP at its earlier offered price of US$110 per share.
Broadcom said it had cut its offer to US$79 per share due to Qualcomm’s increase of its price for NXP to US$127.50 per share, but would revert to US$82 per share if Qualcomm was unable to complete the NXP deal.
Under the new terms, Broadcom will offer Qualcomm shareholders US$57 per share in cash and US$22 per share in Broadcom shares.
Broadcom said other conditions of the proposed merger agreement remained unchanged, including an US$8 billion regulatory reverse termination fee.