Qualcomm Chairman Paul E. Jacobs has sought another meeting with Broadcom CEO Hock Tan and team to discuss for a revision in price and other details in order to finalize the largest technology deal.
Responding to Qualcomm, Broadcom said it does not believe that the process outlined by Qualcomm today is designed to lead to a prompt agreement.
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The letter from Qualcomm to Broadcom CEO indicates that Qualcomm is ready for being acquired by Broadcom – but with revision in price and other conditions. Qualcomm has revealed its conditions on price, regulatory risks, licensing issues, among others.
Qualcomm said Tom Horton, presiding director, will continue to lead Qualcomm in negotiations with Broadcom, with the goal of determining whether there is a mutually beneficial transaction to be done between our two companies.
Broadcom in a statement said that Qualcomm’s disingenuous process defers the question of price. Qualcomm’s presiding director Tom Horton last week stated that the Qualcomm board views Broadcom’s price as “not even close.”
Broadcom believes Qualcomm’s request to enter into an NDA is a result of Qualcomm finally beginning to recognize the will of its stockholders.
Broadcom attempts genuine engagement with Qualcomm, including constructive solutions to Qualcomm’s concerns. Broadcom’s proposal has never been conditioned on due diligence. It is prepared to move forward immediately, without diligence.
There is no cause to delay the Qualcomm annual meeting on March 6. Broadcom will provide confirmatory reverse due diligence upon an agreement on all material terms, including price, as is customary.
On February 23, Qualcomm refused to confirm that it will hold its stockholder vote on March 6.
Broadcom has slashed its offer to $79 per Qualcomm share after Qualcomm increased its offer to NXP Semiconductor.
Broadcom said it’s ready to negotiate its proposal again. If the current Qualcomm board is not willing to engage, Broadcom will be negotiating with the newly-elected Qualcomm board following the Qualcomm annual meeting on March 6.
