Reuters news sources, broke the news that Broadcom is currently preparing to raise the purchase price for Qualcomm, including debt, the second round of the offer as high as 145 billion US dollars.This move is considered Broadcom attempted to March 6 Qualcomm Winning votes for the board election at the general meeting.
Broadcom this time to give a very attractive price, quotes include is expected to rise from around 70 US dollars per share to 80-82 US dollars per share, and a 'higher than usual' spin-off fee, showing Broadcom The deal gives strong confidence in the final permit, which typically amounts to 3-4% of the deal size.
People familiar with the matter added that Broadcom CEO Hock Tan might also decide at the last moment to change the terms drastically (adjusting the purchase price).
According to a source close to Qualcomm's headquarters in San Diego, Qualcomm may not be too cold on the new offer, but he also said that if Broadcom raised the price of $ 80 a share, the chipmaker will face a combination of investor hopes and Broadcom merger pressure.
People close to Hock Tan said the 65-year-old Malaysian is determined to make the deal in a friendly manner, revealing that Hock Tan will scrap plans to replace Qualcomm's current board of directors and nominate new board members from Broadcom.
However, a new round of Broadcom quotes is destined to trigger the most intense hostile bidding war in semiconductor M & A history.
Qualcomm posted quarterly earnings and revenue outpacing analysts' estimates last week due to a surge in chip demand for smartphones and cars, however, the company forecast was below market expectations as telecom sales in China were tepid.
Qualcomm and Apple have infringement disputes Qualcomm said in order to protect the authorization process, there is a need to file a lawsuit Qualcomm is also working hard to secure its own acquisition, the company plans to acquire NXP Semiconductors for 38 billion US dollars.The transaction last month won the EU antitrust Regulators' approval, which has not been ratified by China, Qualcomm expects the Chinese government to approve the deal later this month.
NXP's deal outlook remains uncertain, with some shareholders, including radical hedge fund Elliott Management, asking Qualcomm to raise prices, and Qualcomm expects to make a decision later this month.
In addition, recently KGI analyst GUO Ming-ming in the latest investor report pointed out that Intel may become the apple 2018 all new iPhone's exclusive baseband chip supplier, and Qualcomm will be completely out of the way, before the change will be provided by Qualcomm and Intel Baseband chip to Apple's forecast, which Qualcomm is a big defeat.
At present, Intel's chip technology advances have been able to meet the performance requirements of Apple.China's baseband chip now supports CDMA2000 and dual-card dual standby, which provides more competitive prices.In addition, Guo Ming-ching pointed out that Apple is currently with Qualcomm Fight litigation, a comprehensive switch to Intel chips will weaken Qualcomm bargaining power.
Patent disputes, huge fines, lost big clients ... Looks like the surrounding environment is bad for Qualcomm.
In November last year, Broadcom proposed the first round of 70 US dollars per share offer, Qualcomm had responded that if Broadcom want to acquire Qualcomm, the need to increase the purchase price at least 80 US dollars per share. Whether the offer will impress Qualcomm shareholders What?