Qualcomm Presses Broadcom After Meeting -- Update
16 Febbraio 2018 - 05:46PM
Dow Jones News
By Cara Lombardo
Qualcomm Inc. said while it is open to further discussions with
Broadcom Ltd. it remains against the company's "best and final"
takeover offer because it still undervalues the business and
doesn't adequately account for the risk of the deal falling
through.
In a Friday letter to Broadcom Chief Executive Hock Tan,
Qualcomm Chairman Paul Jacobs said it was encouraged that Broadcom
representatives in a Wednesday meeting expressed a willingness to
agree to certain potential antitrust-related divestitures beyond
those in the company's publicly filed $121 billion proposal.
But Broadcom representatives seemed to resist other commitments
that regulatory bodies are likely to require, Mr. Jacobs wrote.
They declined to clarify their plans for Qualcomm's licensing
business and sought to control that business between striking a
deal and completing it, which may violate antitrust laws, he
wrote.
Mr. Jacobs also said the current $8 billion breakup fee is
inadequate to protect Qualcomm against the risk that the deal
doesn't gain regulatory approval.
"Our board is open to further discussions with Broadcom to see
if a proposal that appropriately reflects the true value of
Qualcomm shares, and ensures an appropriate level of deal
certainty, can be obtained," he wrote.
Broadcom didn't immediately respond to a request for
comment.
Broadcom last week raised its offer for Qualcomm to $82 a share
from its earlier offer of $70 a share.
Shares in Qualcomm were little changed in Friday morning
trading, while Broadcom shares slipped 1%.
Ted Greenwald contributed to this article
Write to Cara Lombardo at cara.lombardo@wsj.com
(END) Dow Jones Newswires
February 16, 2018 11:31 ET (16:31 GMT)
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