Qualcomm building in San Diego
A Qualcomm sign is pictured at one of its many campus buildings in San Diego. REUTERS/Mike Blake

Updated at 11 a.m., Wednesday, Feb. 21

Broadcom cut its hostile offer for Qualcomm by $3 in cash per share on Wednesday, but still said it is committed to buying the San Diego-based wireless pioneer.

“Broadcom is prepared to acquire Qualcomm for $79 per Qualcomm share, consisting of $57 in cash and $22 in Broadcom shares,” the company said in a statement before the opening of financial markets. “Broadcom remains confident that Qualcomm’s stockholders will continue to support its proposal to acquire Qualcomm.”

Qualcomm’s stock was trading under $63 on Wednesday, down over $1, and well below Broadcom’s offer, suggesting stock traders do not expect the merger to succeed.

Broadcom’s action came after Qualcomm on Tuesday increased its own offer for Dutch chip-maker NXP Semiconductors to complete a merger announced more than a year ago.

“Qualcomm’s board acted against the best interests of its stockholders by unilaterally transferring excessive value to NXP’s activist stockholders,” Broadcom said, vowing to raise its offer by $3 if the NXP acquisition fails.

However, Qualcomm responded that completing the NXP merger would improve Qualcomm’s bottom line by up to 40 percent, and in any case Broadom’s offer remains inadequate.

“Broadcom’s reduced proposal has made an inadequate offer even worse despite the clear increase in value to Qualcomm stockholders from providing certainty around the NXP acquisition,” Qualcomm said in a statement. “Broadcom has refused and continues to refuse to engage with Qualcomm on price.”

Broadcom, which is based in Singapore but moving to San Jose, continued its proxy battle for control of Qualcomm’s board, urging shareholders to vote for a slate of six directors at the annual meeting on March 6.

Chris Jennewein is Editor & Publisher of Times of San Diego.