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Qualcomm rejects ‘final’ Broadcom offer, but is deal actually off?
Qualcomm’s board of directors have unanimously rejected a ‘best and final’ acquisition offer from fellow chipmaker Broadcom.
The US$121-billion offer saw Qualcomm shares valued at US$82 per share, comprised of US$60 in cash and US$22 in Broadcom shares.
“The Qualcomm board, assisted by its financial and legal advisors, determined that the Broadcom proposal materially undervalues Qualcomm and falls well short of the firm regulatory commitment the board would demand given the significant downside risk of a failed transaction,” read an excerpt of a Qualcomm news release.
The board hasn’t completely shut down a possible deal though, saying it was “committed to exploring all options for maximising shareholder value”.
Qualcomm has rejected a so-called final offer from Broadcom, but hasn’t shut down negotiations just yet
“…Qualcomm has offered to meet with Broadcom to see if it can address the serious deficiencies in value and certainty in its proposal,” the release read.
In fact, the US chipmaker wants to know what is the “true highest price” that Broadcom is prepared to offer. Then there’s Qualcomm’s concern over the deal closing, with the firm asking Broadcom whether they’re “willing to commit to take whatever actions are necessary” to ensure it closes.