Chipping away

20 February 2018 By John Foley Follow @johnsfoley

Sweetening its offer for the rival chipmaker looks like an attempt to disrupt Qualcomm’s own suitor even as proxy advisers urge efforts to negotiate a deal. Broadcom’s $120 bln attempt to make a tech monster may yet fail, but Qualcomm’s board is becoming less of an obstacle.

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Qualcomm raised its bid for rival chipmaker NXP Semiconductors to $127.50 per share, a 16 percent increase on its previous offer.

NXP shareholders representing more than 28 percent of the company, including funds affiliated with activist hedge fund Elliott Advisors, agreed to tender their shares. The new offer lays out a 70 percent threshold for acceptance.

Qualcomm rejected a cash-and-shares bid from rival Broadcom worth more than $120 billion. Broadcom has proposed replacing six of Qualcomm’s directors at the company’s annual general meeting on March 6.

Shareholder proxy adviser ISS advised Qualcomm shareholders to back the election of four of Broadcom’s nominees, saying that a negotiated deal was “likely to be the most beneficial path for shareholders.” Proxy adviser Glass Lewis recommended that shareholders vote for all six Broadcom nominees.

Broadcom had earlier said it was comfortable with Qualcomm buying NXP at the previously offered $110-a-share price.

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Chipping away

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