Broadcom raises offer for Qualcomm, puts NXP deal under pressure
The offer values Qualcomm at about $121 billion.
However, while the bid is up from the $70.00 in cash and stock offered on November 6, 2017 it is also described as the “best and final offer” and is premised on Qualcomm either acquiring NXP Semiconductor NV on the current terms or terminating the deal.
Qualcomm’s proposed acquisition of NXP, which has yet to receive regulatory clearance from Chinese authorities, has been on the table for over a year and shareholders are now expected to reject the deal on the current terms of $110 per NXP share. NXP was trading at $120 on Monday February 5, 2018.
Broadcom’s offer comprises $60 in cash and $22 in shares but is also contingent on Qualcomm not delaying its annual meeting of shareholders later than March 6, 2018.
Broadcom’s offer includes additional sweetners such as a regulatory fee and a reverse termination fee as well as the statement that it would be prepared to make strong regulatory commitments to get the deal done. Broadcom also said it would invite two Qualcomm directors on to the board including chairman and former CEO of Qualcomm Paul Jacobs.
Broadcom said the deal could be completed within about 12 months of being agreed.
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