Higher and further away

5 February 2018 By John Foley Follow @johnsfoley

The chipmaker has raised its hostile bid to more than $120 bln. The merger is no more likely to pass antitrust review unscathed, though. And because Qualcomm’s owners would get roughly a quarter of the combined company, Broadcom’s overpayment becomes a serious risk for them.

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Broadcom on Feb. 5 made what it described as its final offer to buy rival chipmaker Qualcomm, bettering an earlier cash and stock approach and valuing the target at over $120 billion.

Qualcomm shareholders would receive $60 per Qualcomm share in cash and Broadcom shares worth $22, in total $82 per share. The earlier $70-a-share unsolicited offer made in November, which Qualcomm rejected, included stock worth $10.

Broadcom has also proposed a line-up of 11 directors to replace Qualcomm’s board, to be put to a shareholder vote at the company’s annual meeting on March 6.

Qualcomm shares closed on Feb. 2 at $66.07 per share.

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