Support Times of San Diego's growth
with a small monthly contribution
Qualcomm raised the acquisition price from $110 per share to $127.50, an increase of $6.2 billion in value that could make it too expensive for Broadcom to proceed with its $120 billion offer for the wireless pioneer
“Broadcom believes the price increase demonstrates the Qualcomm board’s disregard for its fiduciary duty to maximize value for Qualcomm stockholders,” Broadcom said in a statement. “In light of Qualcomm’s decision to transfer value from its own stockholders to NXP stockholders, Broadcom is evaluating its options.”
Broadcom, which is based in Singapore but moving to San Jose, said Qualcomm’s directors should have “seriously engaged with Broadcom regarding Broadcom’s value-maximizing offer and the terms of the NXP acquisition.”
Qualcomm announced a deal to purchase NXP in October 2016, but has had to repeatedly extend its offer for outstanding share.
“The acquisition of NXP will enable us to accelerate our growth strategy,” said Tom Horton, presiding director of Qualcomm’s board, in explaining the increased price. “The board unanimously believes this is an attractive acquisition at this price for Qualcomm stockholders based on NXP’s recent strong financial performance, the growth in key strategic areas such as auto and IoT [Internet of things] and our high confidence in management’s ability to execute upon the synergy opportunities.”
Qualcomm stock was trading below $63, down over $2, on Wall Street early Tuesday, well below Broadcom’s offer of $82 per share.
>> Subscribe to Times of San Diego’s free daily email newsletter! Click hereFollow Us: