Qualcomm rejects Broadcom’s ‘best and final’ buyout offer

NEW YORK: United States semiconductor company Qualcomm Inc on Thursday rejected Broadcom Ltd’s revised US$121 billion (RM484 billion) buyout offer, but proposed meeting its peer to see whether they can address what it called the bid’s “serious deficiencies in value and certainty”.

Qualcomm’s response attempts to strike a balance between continued resistance of Broadcom’s takeover attempt and heeding the calls of some Qualcomm shareholders, who urged the company in recent days to engage with its rival in case it can clinch an attractive deal.

Broadcom said it proposed to meet by this weekend, but Qualcomm was not willing to meet until Tuesday, after the two companies’ respective meetings with proxy advisers Glass Lewis and ISS.

“We hope that your willingness to meet with us reflects Qualcomm’s genuine intent to reach an agreement with respect to our February 5 proposal,” said Broadcom chief executive officer Hock Tan to Qualcomm executive chairman Paul Jacobs in a letter published by Broadcom.

Broadcom said its latest offer was “best and final” and that it had strong Qualcomm stockholder support.

Qualcomm had rejected Broadcom’s first unsolicited US$103 billion acquisition offer in November, without engaging further.

In response, Broadcom nominated a slate of directors to replace Qualcomm’s board.

Qualcomm shareholders are scheduled to vote on these nominations at a March 6 meeting.

Qualcomm said Broadcom’s latest US$82 per share offer, comprising US$60 per share in cash and US$22 per share in stock, “materially undervalues” Qualcomm and falls short of the firm regulatory commitment it would demand given the significant antitrust risks involved.