1 pass Qualcomm, Broadcom to negotiate the acquisition time has been set? On Wednesday!
According to Reuters reported on February 12, informed sources, Qualcomm and Broadcom plans to meet on Wednesday, February 14 local time, formally on the latest $ 121 billion acquisition of the program to discuss, which is the first time the two companies for the first time Expanded trade negotiations.
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.
Broadcom CEO Hock Tan also wrote to Qualcomm chief executive Paul Jacobs in which he wrote: "Broadcom has long been hoping to have 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 Some shareholders, including the radical hedge fund Elliott Management, also asked Qualcomm to raise prices. (Proofread / Fan Rong)
2. Prepared for the acquisition of Qualcomm Broadcom, the largest ever debt financing;
NEW YORK, Feb 13 (Bloomberg) - Broadcom has put in place up to $ 106 billion of debt financing arrangements to support its acquisition of Qualcomm, including the largest corporate loan ever.
Broadcom said in a statement Monday that most of the financing will be provided by 12 banks such as Bank of America and JP Morgan, while investment funds such as Silver Lake, KKR and CVC agree to provide $ 6 billion through convertible bonds, The debt commitment is sufficient to cover the cash portion of Qualcomm's $ 82 bid per offer.
The previous acquisition financing record was set up by Anheuser-Busch InBev in 2015 when the company raised $ 75 billion to acquire SABMiller Plc, which was then repaid through further debt financing, primarily for issuing bonds.
Broadcom first made a $ 105 billion offer to Qualcomm in November and was quickly rejected by the target company, which was then backed by a financing package in which banks said they are "very confident" to be able to arrange this in the bond market Pen financing.
Hock Tan, chief executive, said the new $ 121 billion bid was 'best and final bid.' It is especially important that the bid is backed by financing commitments, as the bond market has become unpredictable in recent weeks.
Qualcomm shareholders will decide next month whether to replace their board with Broadcom's nominee, which will determine the future fate of the deal, which Qualcomm said on Thursday said it "seriously undervalues Qualcomm and is far from reaching Regulatory approval required by the authorities).
Broadcom said debt financing will come in the form of bridge loans and a $ 5 billion revolving credit line Other banks that offer loans include Citigroup, Deutsche Bank, Mizuho, Mitsubishi UFJ, Sumitomo Mitsui, Wells Fargo, Morgan Stanley, Scotiabank, Montreal and Royal Bank of Canada.
3. Qualcomm Meng Pu: adhere to the concept of rooting the Chinese "horizontal empowerment" conducive to the future development of the industry;
Original title: Meng Pu NXP M & A statement: Qualcomm sticks to root Chinese concept of "horizontal empowerment" is more conducive to the future development of the industry
Into 2018, the industry's high concern for Qualcomm can be described as unabated: on the one hand, Qualcomm and the Chinese mobile phone market occupy more than half of the manufacturers signed the 5G pilot program, on the other hand and NXP, Broadcom mergers and acquisitions 'case also' Continue to affect the industry nerve.Micro chairman of Qualcomm China recently said in the era of the upcoming 5G Internet of things and new industries such as automotive background, Qualcomm insisted on rooting in China philosophy, through its 'horizontal empowerment' business Mode and basic technology research and development support, help China's auto electronics, smart car, Internet of Things and other industries better development.
In January of this year, Qualcomm held the 2018 Technology and Cooperation Summit in Beijing and many Chinese manufacturers such as OPPO, vivo, Xiaomi, ZTE and Lenovo attended the conference.For cooperation with Chinese handset manufacturers, Meng Pu said that in the past 20 years or more, The close cooperation between Qualcomm and China's mobile phone industry chain is getting closer and closer, and the cooperation is getting better and better, all of which are the basis for Qualcomm's successful convening of the Technology and Cooperation Summit and the launching of the 5G pilot program.
Speaking on the future opportunities of the 5G industry chain, Meng Pu said Qualcomm is looking forward to further cooperation with various industries in China to jointly promote Chinese enterprises to become pioneers in the industry in the 5G era. As of early February this year, Qualcomm has reached a global scale including 18 operators including China Mobile, China Telecom and China Unicom, as well as 19 terminal manufacturers including OPPO, vivo, Xiaomi, Lenovo and other Chinese manufacturers reached a cooperation relationship, will use Qualcomm's technology to jointly promote the 5G Global development and accelerated realization.
In the context of the global power 5G, Qualcomm more than a year ago will be on the eyes of the world's top ten semiconductor company NXP, announced the acquisition of the company against this merger, the world now has eight countries or regions in the market The approval of regulatory authorities, China is the last one.This acquisition also caused the concern of Chinese industry.
Meng Pu said NXP's business with almost no overlap with Qualcomm.NP is the world's leading manufacturer of high performance mixed signal semiconductors, its products in the automotive industry, security, networking and the Internet of things have a lot of applications, which is Qualcomm Want to buy NXP important reason.
'On the other hand, we hope that the emerging 5G industry will be able to continue to exert our enabling and enabling role in China's industry through the acquisition of NXP into the Internet of Things and automotive electronics. Buy NXP background. 'Meng stressed stressed.
Industry insiders believe that Qualcomm's acquisition of NXP will have an impact on China's semiconductor industry.Meng Pu said that in view of these concerns, we should 'see the essence through the phenomenon', on the one hand depends on Qualcomm's business model, including after the acquisition of NXP's business model On the other hand, it depends on whether Qualcomm's acquisition of NXP and China's investment and commitment can continue to maintain and strengthen.
Meng Pu stressed: 'From 3G, 4G Along the way, Qualcomm not only as part of the support of the entire industry chain, but also as a whole industry R & D team and R & D momentum exists in accordance with Qualcomm's business model, we have been Is to share the wisdom and promote innovation throughout the entire industry chain in 2017. Seven of the world's top ten mobile phone manufacturers in 2017 are Chinese manufacturers, and the momentum of overseas development is also very good .Then, Qualcomm is very important to promote Power.
Meng Pu said that thanks to its own ability to innovate, Qualcomm has been "leveling-up" related industries through an "invention-sharing-collaboration" business model and is a "level-enabled" company. The acquisition of NXP, Qualcomm will still be based on the principle of promoting globalization, promoting industry-level integration, explore the opportunities brought by the Internet of Things 5G era, so that many Chinese industries and companies can be developed.
In response to the phenomenon of 'vertical integration' in the industry, Meng Pu believes that the development of the Chinese industry over the past few years has benefited from the advantages of horizontal aggregation and promoted the entire manufacturing and industrial capacity in China. The other is the globalization of integration Qualcomm has been playing an active role in these two points, and if vertically integrated, the entire industry can only end up in the hands of a handful of companies, which is not good for most of China's industries of.
On the other hand, Qualcomm is also continuing to increase its investment in and support of the Chinese market.In 2016, Qualcomm established a joint venture with Guizhou Provincial Government Guizhou Huasun Tong Semiconductor Co., Ltd., devoted to the design and development of data center server chips, China has made great progress in building a self-controlled and secure information industry, and the project has progressed smoothly and has achieved positive results. The cooperation between Qualcomm and SMIC has accelerated the mass production of its 28-nanometer capacity and greatly increased its production volume. Qualcomm and Huawei, Belgium IMEC Co-investment SMIC 14-nanometer R & D companies and has achieved initial success of 14-nanometer R & D in 2016, Qualcomm set up its first semiconductor test center in Shanghai in order to better support Chinese customers and partners Meng stressed that these are examples of Qualcomm's continuous investment in China's industrial chain and the beginning of flowering.
Qualcomm has already stepped up its cooperation with leading players in the automotive industry at the 2018. At CES in 2018, Qualcomm announced its cooperation with BYD, the Snapdragon 820A platform that provides support for in-car infotainment systems, electronic meters and more , Which is a good platform for automakers and BYD will adopt Qualcomm Snapdragon car platform in its new energy vehicles in 2019. In addition, Qualcomm established an intelligent car joint innovation center with Chongqing Municipal Government in 2017, It has also set up the IOT Joint Innovation Center in Nanjing, Chongqing, Qingdao, etc. It is also to promote the upgrading of the automotive industry and the development of the Internet of Things industry.
Meng Pu said Qualcomm has always insisted on the concept of rooted in China, the current business in China has accounted for more than 50% of its global business, so he believes Qualcomm more and more like a Chinese company. 'Qualcomm's cooperation with China's industry is very close , It is not the pursuit of short-term interests of the company, the future Qualcomm will be long-term rooted in China, together with the Chinese industry to seek common development. "Finally, said Meng Xin.
4. Broadcom acquisition Qualcomm new progress: another 100 billion U.S. dollars debt financing
SAN FRANCISCO, Feb. 12 morning news, Broadcom has finalized a debt of up to 100 billion US dollars in the hostile takeover of Qualcomm.In addition, Broadcom also won the cooperation of two large private equity firms.
Sources disclosed that a number of banks, including Bank of America, Citigroup, Deutsche Bank, JP Morgan and Morgan Stanley, have agreed to provide Broadcom with up to $ 100 billion in credit instruments, including a $ 5 billion revolving loan and Bridge loan.
Sources said private equity firms KKR and CVC Capital Partners also agreed to work with Silver Lake to provide the deal with 6 billion U.S. dollars of convertible bonds.
Broadcom, which has been seeking to acquire QUALCOMM since November last year, has nominated a select group of Qualcomm board members to vote for Qualcomm's board of directors in early March, a week before Broadcom raised its offer to $ 82 a share in cash and stock , The total amount of transactions will exceed 120 billion US dollars.
This acquisition of funding allows Broadcom to provide a full $ 60 cash per share bid.
Broadcom's acquisition of this financing means that the biggest issues in the transaction are resolved, and if the deal is successful, it will become the largest acquisition in the history of the technology industry.
On the other hand, the addition of two well-known private equity firms also helped push the deal.
But the deal faces other hurdles, with Qualcomm saying Broadcom's bids are still too low and there is a serious regulatory risk that Qualcomm has agreed to discuss the acquisition with Broadcom, which is expected to meet earlier this week.
Silver Lake has been an important proponent of Broadcom, which has previously said it will provide Broadcom with $ 5 billion of convertible bonds.