Qualcomm‘s board of directors unanimously rejected Broadcom‘s sweetened purchase offer on Thursday, saying it “materially undervalues” the San Diego wireless pioneer, but agreed to meet.
With Qualcomm’s annual shareholder’s meeting less than a month away, Broadcom is waging a proxy battle for control of the company.
On Monday Broadcom increased its offer by $12 per share to $60 in cash and $22 in Broadcom stock. This “best and final” offer values Qualcomm at approximately $120 billion.
“The Qualcomm board, assisted by its financial and legal advisors, determined that the Broadcom proposal materially undervalues Qualcomm and falls well short of the firm regulatory commitment the board would demand given the significant downside risk of a failed transaction,” the company said.
However, Qualcomm offered to meet with Broadcom executives “to see if it can address the serious deficiencies in value and certainty in its proposal.”
Later Thursday, Broadcom President and Chief Executive Officer Hock Tan said his company “has long sought a meeting to discuss Broadcom’s acquisition of Qualcomm,” but added that he was “astonished to hear that Qualcomm is not willing to meet until Tuesday.”
Qualcomm stock closed Thursday at $62.42, down $2.62 amid a general decline on Wall Street.
Buying Qualcomm would make Singapore-based Broadcom the third-largest chip maker, behind Intel and Samsung Electronics.
