Broadcom Ltd. (AVGO) made it clear on Monday morning two things: one is still interested in acquiring Qualcomm Inc. (QCOM), and the other is not particularly eager to buy.
Broadcom Want to Buy Qualcomm Not surprisingly, a month ago, Broadcom unexpectedly offered $ 105 billion to acquire Qualcomm, which is widely believed to have a backcourt, especially given Qualcomm's lack of enthusiasm for acquisitions by its former lawsuits. Broadcom Monday announced plans to nominate a Approving your own candidate for Qualcomm's board shows that Broadcom is well positioned to fight a protracted war.
However, Broadcom did not change its bid for QUALCOMM in its statement Monday, at $ 70 a share, of which $ 60 was cash, a price interpreted as a lawsuit between Qualcomm and its largest customer, Apple Inc. (AAPL) Pre-war valuations are good, which is the highest valuation Qualcomm achieved on the eve of the biggest global market capitalization lawsuit.
Such a purchase price is unlikely to make the deal.Many Qualcomm shareholders and analysts believe that the price of nearly 80 dollars per share more acceptable, but now Broadon has good reason not to rush.First, Broadcom in the acquisition of Qualcomm transactions no competition In fact, there are very few companies that can make such generous deals, and second, serious problems that put pressure on QUALCOMM's shares will not disappear anytime soon.
The legal battle between Qualcomm and Apple escalated last week, with the two companies launching new patent infringement lawsuits against each other, while another unidentified company, like Apple, declined to pay Qualcomm royalties.
Qualcomm's deal to acquire NXP Semiconductors, which has yet to be finalized and the situation is complicated, has been finalized earlier this year and Qualcomm seems intent on leveraging its business diversification and implementing Trapped overseas cash.But this proposed merger transaction has not cleared the key regulatory obstacles, and now there are strong shareholders of NXP Semiconductors strongly fare increase.Qualao can give higher offer, but if the current fare increase, or have been Be regarded as making poison pills plan in order to financially frustrate Boton's acquisition of the suspicion.
However, Broadcom's patience is not without risk .Broadcom determined to nominate new directors is actually a bet, Qualcomm shareholders have been completely disappointed, and will certainly vote against the company's current management However, Broadcom still have to justify why they think they can Do better.