Broadcom lowers bid for Qualcomm, accuses company of acting against the interests of shareholders
- Broadcom is now offering Qualcomm $79 per share, down from $82 per share.
- Qualcomm last week rejected the $82 per share deal, which lead director Tom Horton said was "just not even close to what the value of the company is."
- Broadcom CEO Hock Tan had previously said a merger between Qualcomm and NXP Semiconductors would lower the value of the company.
Broadcom lowered its bid for Qualcomm on Wednesday to $79 per share — down from $82 per share — in light of a possible deal between Qualcomm and NXP Semiconductors.
Qualcomm last week rejected the $82 per share deal, which lead director Tom Horton said was "just not even close to what the value of the company is."
Broadcom CEO Hock Tan had previously said a merger between Qualcomm and semiconductor company NXP would lower the value of the company.
"Broadcom believes that a responsible Qualcomm board could have preserved value by following [proxy advisor Institutional Shareholder Services'] clear recommendation to work with Broadcom on the NXP transaction and negotiate the sale of Qualcomm to Broadcom," Broadcom said in a statement.
"Instead Qualcomm's board acted against the best interests of its stockholders by unilaterally transferring excessive value to NXP's activist stockholders. Despite this direct value transfer, Broadcom remains committed to delivering a value-maximizing offer to Qualcomm stockholders," the statement added.
All other terms of the deal remain, including $8 billion in proposed break-up fees, Broadcom said.
The new offer would return the $3 per share if Qualcomm and NXP failed to complete their deal.
Qualcomm raised its bid for NXP to $127.50 on Tuesday, partially in an effort to help fend off Broadcom's bid.
Broadcom has nominated six members to the Qualcomm board, constituting a majority of the 11-person board, to be voted on in March when Qualcomm holds its annual meeting.
"Broadcom remains confident that Qualcomm's stockholders will continue to support its proposal to acquire Qualcomm, and looks forward to concluding a transaction with this Qualcomm board of directors, or the newly elected Qualcomm board following its annual meeting," the company said.
Qualcomm did not immediately return a CNBC request for comment.