Broadcom raises Qualcomm hostile bid to about US$121 bil

(Feb 5): Broadcom has raised its bid for Qualcomm Inc. to about US$121 billion ($160 billion), in an attempt to force what could be the largest-ever technology deal.

The new offer of US$82 a Qualcomm share will be Broadcom’s “best and final,” according to a statement Monday. The deal would take the form of US$60 in cash and the remainder in Broadcom shares. That would represent a 50% premium over the price Qualcomm was trading at on Nov 2, before news of the approach broke, Broadcom said.

Qualcomm’s board previously rejected Broadcom’s original US$105 billion acquisition approach, 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. Qualcomm has also argued that regulators would be unlikely to quickly, if ever, approve such a combination.

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