Broadcom has lowered its bid for Qualcomm after the latter increased its takeover offer for NXP Semiconductors. The company cut its offer by USD 3 to USD 79 per Qualcomm share.
Broadcom's previous offer was based on Qualcomm's lower bid for NXP. However, Qualcomm was forced to increase the NXP price after little take-up by NXP shareholders. Broadcom said the increased price for NXP is the equivalent of transferring USD 4.10 per Qualcomm per share, or USD 6.2 billion in total value, to NXP shareholders.
The new offer from Broadcom is divided into USD 57 in cash, down from USD 60 previously, and still USD 22 per share in Broadcom shares. Broadcom said it would go back to its previous terms, of USD 82 per Qualcomm share, if Qualcomm ends up not completing the NXP acquisition.
Broadcom's proposed merger agreement otherwise remains unchanged, including the USD 8 billion regulatory reverse termination fee and 6 percent per annum fee if the deal is not completed within 12 months of a merger agreement.
Qualcomm said the new proposal from Broadcom "has made an inadequate offer even worse despite the clear increase in value to Qualcomm stockholders from providing certainty around the NXP acquisition". The company had already rejected the Broadcom offer and said Broadcom continues to refuse to engage with Qualcomm on price.
