QualcommRemains Opposed To Offer -- WSJ
17 Febbraio 2018 - 09:02AM
Dow Jones News
By Cara Lombardo and Ted Greenwald
This article is being republished as part of our daily
reproduction of WSJ.com articles that also appeared in the U.S.
print edition of The Wall Street Journal (February 17, 2018).
Qualcomm Inc. said Friday that while it is open to further
discussions with Broadcom Ltd. it remains against the rival chip
maker'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 letter to Broadcom's chief executive, Qualcomm Chairman
Paul Jacobs said it was encouraging that Broadcom participants in a
Wednesday meeting seemed receptive to certain potential
antitrust-related divestitures beyond those in the company's
publicly filed $121 billion proposal announced Feb.5.
But Broadcom representatives appeared 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.
Broadcom's bid for Qualcomm represents what would be the largest
tech takeover ever. Both companies are key suppliers to the
smartphone industry, and combined would be the world's
third-largest chip maker by revenue.
Their meeting in New York included executives, directors and
advisers from both sides and lasted for roughly two hours,
spokesmen for the companies said.
Qualcomm's team included Mr. Jacobs and Chief Executive Steve
Mollenkopf, along with other executives, board members, bankers,
and lawyers. Broadcom CEO Hock Tan attended with other Broadcom
executives and advisers.
Mr. Jacobs also said in his letter that 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 fell less than 1% to $64.85 on Friday, while
Broadcom shares dropped 1% to $248.89.
Corrections & Amplifications Broadcom has agreed to pay $8
billion to Qualcomm if regulators reject its proposed takeover. An
earlier version of this article incorrectly stated the breakup fee
hadn't been disclosed. (Feb. 16, 2018)
Write to Cara Lombardo at cara.lombardo@wsj.com and Ted
Greenwald at Ted.Greenwald@wsj.com
(END) Dow Jones Newswires
February 17, 2018 02:47 ET (07:47 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.
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