Broadcom is considering raising its offer to buy rival Qualcomm by offering more of its own stock, following consultation with several of Qualcomm’s top shareholders, people familiar with the matter told Reuters.
The sources said Broadcom is planning to apply pressure on Qualcomm to engage in negotiations by offering more to its shareholders, in addition to threatening to replace its board of directors. Qualcomm has a deadline of 08 December to nominate directors for a vote in March at the shareholders meeting.
Broadcom’s CEO Hock Tan has stated he is open to launching a takeover battle. The company's initial bid offered USD 60 cash and USD 10 in Broadcom stock for each Qualcomm share. Qualcomm’s shareholders have indicated to Broadcom they expect at least USD 80 per share in order for Qualcomm to be sold, the sources said.
Broadcom has made several requests for a meeting with Qualcomm since it unveiled its offer in earlier November, but Qualcomm has declined to meet.
