Last week Qualcomm board members unanimously voted to veto Broadcom's revised $ 121bn tender offer, noting that Broadcom's takeover offer "significantly undervalues" Qualcomm's value and, given the significant downside risk of the failed deal, Meeting Regulatory Requirements Qualcomm recommends meeting with Broadcom management to discuss serious deficiencies of the recommendations and to give better protection.
Hock Tan, Broadcom's CEO, also wrote to Qualcomm CEO Paul Jacobs in which he wrote: "For a long time, Broadcom had always wanted to hold a meeting with Qualcomm to discuss the Broadcom acquisition QUALCOMM QUESTION After Qualcomm announced its willingness to meet with us today, we proposed that both sides meet on Friday, Saturday or Sunday (before February 11) and I was surprised to learn that Qualcomm would not be willing to contact us with us Meet - and schedule it after Qualcomm and Broadcom have met Glass Lewis, an investment firm consultant, and ISS, respectively.
At present, the meeting request has been approved by both parties, at which time the two sides will hold talks on the purchase price of $ 121 billion and submit an answer sheet for the acquisition, which takes three months.
Before the February 14 meeting, the two companies will also meet with ISS and Glass Lewis, the agency, to raise the rationale that Qualcomm shareholders should support them on the March 6 shareholder vote.
The Wall Street Journal reported today that Broadcom has finalized a debt of up to 100 billion U.S. dollars in debt financing and also obtained the cooperation of two large private equity firms.According to sources, a number of banks, including Bank of America, Citigroup, Deutsche Bank, JP Morgan and Morgan Stanley, agreed to provide up to 100 billion Broadcom loan instruments, including 5 billion US dollars in revolving loans and bridge loans.
Sources said private equity firms KKR and CVC Capital Partners have agreed to work with Silver Lake to provide the deal with $ 6 billion in convertible bond financing.Overnight, Silver Lake is an important bacon supporter, the company also said earlier, Will provide Broadcom 5 billion US dollars in convertible bond financing.
Broadcom also raised its offer price from $ 70 to $ 82 per share and made other concessions, including agreeing to pay Qualcomm $ 8 billion in 'break-up fees' when the transaction could not be completed due to antitrust pressure. People also added that Hock Tan may also decide at the last moment to change the terms drastically (adjust the purchase price).
People close to Hock Tan also revealed that Hock Tan is going to scrap plans to replace the current board of Qualcomm and the new board member nominated by Broadcom.
At the heart of this acquisition battle is the integration of the wireless technology equipment market, with smart phone makers such as Apple and Samsung taking advantage of their market to push down chip prices during the negotiations. "At present, NXP's trading prospects remain uncertain and have not yet won China Business By the passage of the ministry, some shareholders, including the radical hedge fund Elliott Management, also asked Qualcomm to raise prices.