from the that's-$5-billion-plus-one-Jeff-Bezos dept.
Broadcom Raises Hostile Bid for Qualcomm to About $121 Billion
Broadcom Ltd. has raised its bid for Qualcomm Inc. to about $121 billion, in an attempt to force what could be the largest-ever technology deal.
The new offer of $82 a Qualcomm share will be Broadcom's final offer, according to a statement Monday. The deal would take the form of $60 in cash and the remainder in Broadcom shares.
Qualcomm's board previously rejected Broadcom's original $105 billion acquisition, and has since dug in against the threat of a takeover, with Chief Executive Officer Steve Mollenkopf dismissing the bid as not being worth consideration.
Broadcom also plans to offer Qualcomm a higher-than-usual breakup fee in the event regulators thwart the deal, according to the sources. Typically, such break-up fees equate to approximately 3 percent to 4 percent of a deal's size.
Previously: Broadcom Offers $105 Billion for Qualcomm; Moves HQ Back to the USA
Related Stories
Broadcom Considering Unsolicited $105 Billion Bid to Acquire Qualcomm
Broadcom is deciding whether to proceed with the largest-ever attempted acquisition of a chipmaker:
Broadcom Ltd. is considering a bid of more than $100 billion for Qualcomm Inc., according to people familiar with the matter, in what would be the biggest-ever takeover of a chipmaker. Broadcom is speaking to advisers about the potential deal, said the people, who asked not to be identified because talks are private. The offer of about $70 a share would include cash and stock and is likely to be made in the coming days, the people said. A final decision on whether to proceed has not been made, they said.
[...] Qualcomm finds itself in a weakened state. A legal battle with Apple is costing revenue and jeopardizing a business model that for years made Qualcomm one of the most successful chipmakers. Before today, its shares had slumped 16 percent this year, compared with a 41 percent surge in the Philadelphia Semiconductor Index. A change of management at Qualcomm might help resolve the dispute with Apple more quickly, and thereby make Qualcomm's licensing and chip businesses more valuable, according to Sanford C. Bernstein & Co. analyst Stacy Rasgon. Earlier this week, Qualcomm executives said the legal process would "proceed under the court's schedule," indicating no resolution soon.
Qualcomm's board members, including several seats controlled by Broadcom, were set to vote on Broadcom's acquisition attempt on Tuesday. However, the annual shareholder meeting has been postponed for 30 days by the Committee on Foreign Investment in the United States:
Broadcom Ltd. is on course to win all six of the seats it's seeking on Qualcomm Inc.'s board, giving it a majority to push forward with its hostile takeover even as a U.S. government panel forced a delay of the final tally amid concerns about the deal's threats to national security.
Based on a count of more than half of the votes already cast, Broadcom would win a majority of Qualcomm's board seats, according to information obtained by Bloomberg. If that result holds up when the final vote takes place, Broadcom would have a mandate to overturn Qualcomm management's opposition to the $117 billion deal. Representatives for Broadcom and Qualcomm declined to comment.
The Committee is taking preemptive action this time:
The panel, the Committee on Foreign Investment in the United States, or Cfius, typically works behind closed doors and reviews deals only after they are announced. In the case of Qualcomm, the panel, which includes representatives from multiple government agencies, is looking at the acquisition before it is complete. In practice, reviews by Cfius often lead to the demise of deals.
[...] Already, Cfius has taken a more proactive role, blocking several major deals by Chinese buyers in recent months. Among them were proposed acquisitions of MoneyGram, a money transfer company, and Lattice Semiconductor.
Previously: President Trump Blocks Acquisition of Lattice Semiconductor
Broadcom Raises Bid for Qualcomm to $121 Billion
(Score: 1) by fustakrakich on Tuesday February 06 2018, @01:55AM (1 child)
Let's see if the next offer is one he cannot refuse...
La politica e i criminali sono la stessa cosa..
(Score: 2) by Fnord666 on Tuesday February 06 2018, @03:50AM
Stop horsing around.
(Score: 2) by bob_super on Tuesday February 06 2018, @02:11AM
"Quala, I want you to be mine!"
"But Broady, I'm not sure, You just wave money around. I'm not that kind of woman."
"You are right, Quala. Money is no object for you. I just got a tax cut, have another 16 billion!"
"Oh Broady ... You're so appealing right now!!!"
Will she? Won't she? Will Aplo step in and ruin their romance with talks of patents and his own big checkbook? What will Gloo think, after his engagement to HecTiC?
Tune in next week, for a new episode of "My merger's bigger than yours", the Silicon Soap that keeps thousand on the edge of their ejector seat!
(Score: 2) by takyon on Tuesday February 06 2018, @02:18AM
Some sources are calling it $146 billion after $25 billion of Qualcomm's debt is accounted for.
http://www.zdnet.com/article/broadcom-submits-final-146-billion-offer-in-qualcomm-takeover-bid/ [zdnet.com]
https://www.ft.com/content/aae857a6-0a0c-11e8-8eb7-42f857ea9f09 [ft.com]
[SIG] 10/28/2017: Soylent Upgrade v14 [soylentnews.org]
(Score: 2) by linkdude64 on Tuesday February 06 2018, @02:53AM (2 children)
That's what I'm concerned about.
Whether you love Obama or hate him, he let a LOT of manufacturing companies that are absolutely CRITICAL to national security become almost entirely bought out by the Chinese, and if you care about "Russian Hacking" but not "Chinese Hacking" you would be a hypocrite.
(Score: 2) by takyon on Tuesday February 06 2018, @02:58AM
Don't worry, Broadcom is aware of the optics:
Broadcom Offers $105 Billion for Qualcomm; Moves HQ Back to the USA
[SIG] 10/28/2017: Soylent Upgrade v14 [soylentnews.org]
(Score: 2, Insightful) by petecox on Tuesday February 06 2018, @03:22AM
[wikipedia] Singaporean Avago bought 'Broadcom' for $37 billion less than 3 years ago, with an estimated merged value of $77 billion.
It sounds like funny money but let 'em crash and burn. I'd be very nervous as an investor as to (a) how NXP can value-add within Qualcomm (b) how these entities mesh together in yet a larger organisation.