Qualcomm, Broadcom hold talks over revised US$121 billion bid

Qualcomm, Broadcom hold talks over revised US$121 billion bid

The offer values Qualcomm at approximately $120 billion.

There were no details about the substance of the talks.

Qualcomm had said it would take the meeting to allow Broadcom to explain how it would attempt to bridge the gaps in both value and deal certainty and to better understand the issues that remained unaddressed in its proposal. However, Qualcomm once again rejected the deal, arguing that the figure significantly undervalues the company and that the deal would likely face significant regulatory hurdles anyway.

But Qualcomm did agree to meet with Broadcom for the first time to discuss the offer.

Qualcomm and Broadcom planned to meet on February 14, Reuters reported on Sunday, citing people familiar with the matter.

By way of a quick recap, Broadcom has been trying to acquire its chip maker rival since November, though Qualcomm rejected the original $103 billion offer.

Qualcomm has raised concerns about potential damage to its business during a lengthy review by global competition regulators of the massive deal - which would be the largest ever in tech.

Qualcomm said the meeting was attended by Chief Executive Officer Steve Mollenkopf, Chief Financial Officer George Davis and Chairman Paul Jacobs, among others. The results of this meeting will reveal if the company will engage in negotiations with Broadcom or defend itself by rallying its shareholders, who are scheduled to vote on 6 March on replacing the majority of its board with Broadcom nominees.

Broadcom said it would withdraw its offer if it was not accepted by Qualcomm's executives or unless its six nominees were elected at the shareholder meeting.

We met with representatives of Broadcom for two hours earlier today, and listened carefully to what they had to say.

"Qualcomm stockholders have consistently communicated to us their support for our $82 per share cash and stock offer", noted Broadcom president and CEO Hock Tan, in a press release.

Qualcomm's shares ended trading Wednesday up 1 percent at $66.59 on the Nasdaq.