Broadcom rejected the overture as “engagement theater” and said it “does not believe that the process outlined by Qualcomm today is designed to lead to a prompt agreement.”
The San Diego-based wireless pioneer said the second of two meetings between the companies held on Friday “led to further progress toward a possible negotiated transaction on key issues other than price” and proposed further discussions.
“While we have made progress on regulatory and other deal certainty issues, you have continued to insist that your current $79 per share proposal is your best and final proposal,” wrote Qualcomm Chairman Paul Jacobs in a letter to Broadcom CEO Hock Tan.
“For the reasons we have stated publicly to our stockholders, and privately to you in our meetings, the Qualcomm board continues to be of the unanimous belief that each of your proposals, including your prior $82 per share proposal, materially undervalues Qualcomm.”
Qualcomm stock closed at $66.41 on Monday, up over 5 percent amid a market-wide increase in share prices.
Amid the discussions, Broadcom is waging a proxy battle for control of Qualcomm, asking shareholders to approve a new board of directors at the March 6 annual meeting.
If Broadcom takes over Qualcomm, it would be the largest merger in the semiconductor industry, valued at over $100 billion.
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