Broadcom CEO on $121 billion Qualcomm bid: 'You know, I'm kind of a frugal guy'

  • Rival chipmakers Broadcom and Qualcomm are scheduled to sit down Wednesday.
  • Broadcom has offered $8 billion in break-up fees, should the deal fail to see regulatory approval.
  • "You think I would sign up to pay $8 billion if there's even a second thought?" Broadcom CEO Hock Tan tells CNBC.

Broadcom CEO Hock Tan, days ahead of talks with Qualcomm for a $121 billion takover, insists he's a "frugal guy."

The rival chipmakers are scheduled to sit down Wednesday to negotiate Broadcom's latest buyout bid of $82 per share, even though Qualcomm on Thursday rejected the increased bid.

Broadcom has offered Qualcomm $8 billion in break-up fees, should the deal fail to gain regulatory approval.

"You know, I'm kind of a frugal guy. You think I would sign up to pay $8 billion if there's even a second thought?" Tan asked during an interview Monday on CNBC's "Squawk on the Street."

Broadcom has said its latest offer is its "best and final."

Hock Tan, chief executive officer of Broadcom
Martin H. Simon | Bloomberg | Getty Images
Hock Tan, chief executive officer of Broadcom

Broadcom said Monday it had secured committed financing of $100 billion in debt from a group of 12 financial institutions, including Bank of America Merrill Lynch, J.P. Morgan, Wells Fargo and Morgan Stanley.

"Any responsible board would make it a top priority to negotiate a merger agreement with us," Tan said.

Broadcom had asked for an earlier meeting, which Tan said he was "astonished" Qualcomm would not accommodate.

Qualcomm has been notably resistant to a deal, rejecting both the initial and the increased bid, either of which would have made the merger the largest in tech history.

Broadcom has nominated its own members to the Qualcomm board. Tan said if Broadcom fails to win a majority of the board seats in March when Qualcomm holds its annual meeting, it would signal an end to negotiations.