February 6, 2018 // 10:19 a.m.
Broadcom has announced its 'best and final offer' for larger rival Qualcomm, as it continues its attempts at a hostile takeover of the company.
Broadcom issued its original offer to acquire Qualcomm, a rival some two times larger in headcount and revenue, in November last year with an unsolicited offer of £98.8 billion. The proposal was quickly rejected by Qualcomm as significantly undervaluing the company, leading Broadcom chief Hock Tan into a hostile takeover attempt which Qualcomm declared a 'blatant attempt to seize control'.
Broadcom isn't done yet, though: The company has announced what it claims to be a 'best and final offer' of $82 per share, up from the original offer of $70 a share, valuing Qualcomm at a 50 percent premium above the level at which its shares were trading before the stock price shifted due to media reports of Broadcom's intentions or around £86.4 billion at the current exchange rate.
'This proposal to acquire Qualcomm is extremely compelling compared to any other alternative available to Qualcomm, with or without the acquisition of NXP, and we believe any responsible board would engage with us, without further delay, to turn this proposal into an executed definitive agreement,' Broadcom president and chief executive officer Hock Tan told Qualcomm's board of directors in an open letter following the offer. 'We continue to hope you choose to engage with us for the benefit of your stockholders. However, we will withdraw this proposal and cease our pursuit of Qualcomm immediately following your upcoming annual meeting unless we have entered into a definitive agreement or the Broadcom-nominated slate [of board members, part of Tan's hostile takeover] is elected.'
Qualcomm has not yet responded to Broadcom's latest offer.