Qualcomm meets Broadcom to discuss $121 billion acquisition offer

From Reuters - February 14, 2018

(Reuters) - Qualcomm Inc said on Wednesday it met with Broadcom Ltd earlier in the day to discuss the latters revised $121 billion bid, the first time the chipmakers have discussed what would be the technology sectors largest ever acquisition.

The outcome of the meeting will determine whether Qualcomm, which has resisted Broadcoms takeover approach since November, will engage in negotiations or continue to defend itself by rallying its shareholders, who are scheduled to vote on March 6 on replacing the majority of its board with Broadcom nominees.

Neither side commented on what transpired in the two-hour meeting. Qualcomm said in its statement its board would meet to determine its next steps.

Broadcoms top executives left the meeting with the impression that their Qualcomm counterparts listened to them but did not engage, according to sources familiar with the matter who asked not to be identified because it was private.

The meeting came after Qualcomm rejected Broadcoms revised cash-and-stock bid of $82 per share last week and said the new offer still undervalued it and fell well short of the firm commitments on regulatory issues it expected.


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