Qualcomm has rejected Broadcom’s revised $121bn (£186.8bn) buyout offer. However, the semi-conductor company has called for a meeting with Broadcom to discuss what it sees as the bid’s “serious deficiencies in value and certainty.”
While Qualcomm continues to resist the takeover bid, the company is well aware that a significant proportion of its shareholders are urging Qualcomm to continue dialogue with Broadcom in case a more attractive deal can be struck. No time has yet been agreed for the two sides to meet.
Undervaluing the business
As things stand, Qualcomm insists Broadcom’s latest $82 per share offer, comprising $60 per share in cash and $22 per share in stock, “materially undervalues” the business.
Qualcomm shares initially rose 1.1% to 63.12 in after-hours trading on Thursday before falling back to 62.43. Broadcom shares also rose 1% at the same time to 232 before dropping over 3% to 229.5.