1. Broadcom cut the price of Qualcomm, from Qualcomm raised the acquisition of NXP offer;
Set micro-grid news, Beijing time on February 22 Bloomberg, Broadcom slightly lower its acquisition of Qualcomm's offer, after Qualcomm raised its offer to buy NXP Semiconductors.
Broadcom is now offering $ 79 per Qualcomm share, down from the $ 82-a-share Best and Final bid earlier proposed earlier this month, Qualcomm on Tuesday said it will raise its offer for NXP to $ 127.50 a share , 16% higher than the previous offer, and Broadcom later said Qualcomm's new bid was too high and considered it a "disregard" for Qualcomm's shareholders.
Broadcom also reiterated that if the case of Qualcomm and NXP acquisitions break, it will be automatically added to Qualcomm's price back to 82 US dollars per share.Reported that Broadcom's latest total acquisition of 1,117 billion US dollars, lower than the previous 1,210 One hundred million U.S. dollars.
Qualcomm declined the previous two Broadcom engagements, prompting the latter to directly appeal to Qualcomm shareholders in support of Broadcom's nomination of Qualcomm board candidates on March 6. One person familiar with the negotiations said the two companies, Qualcomm to promote NXP Acquisition, ignoring the demands made by Broadcom negotiators at a meeting last week.
Broadcom has long said its acquisition of Qualcomm will depend on Qualcomm's acquisition of NXP at a previously agreed price, a source familiar with the technology said Broadcom representatives said they want to buy Qualcomm when its cash reserves are intact, rather than GM's cash acquisition of NXP .
Qualcomm rejected Broadcom's $ 82 bid price last week, and Qualcomm chief Tom Horton said at the time that it was "far less valuable than Qualcomm."
Broadcom CEO Chen Fuyang said earlier that Qualcomm and NXP's M & A case may reduce the value of Qualcomm.On the other hand, Qualcomm increased the purchase price of NXP to US $ 127.50 on the 20th due in part to its defense of Broadcom's bid.
2. Qualcomm criticized Broadcom acquisition bid reduction: do not understand the benefits of the acquisition of NXP;
On Wednesday, Qualcomm attacked Broadcom's bid to reduce its offer, saying the $ 79-a-share bid "made the otherwise unfavorable price worse." In response to Qualcomm's possible acquisition of NXP Semiconductors, Broadcom Wednesday lowered the bid for the acquisition of Qualcomm.
Qualcomm said in a statement, "Broadcom clearly knows that 'a $ 4.1 drop in value per share' does not exist because the deal can not be done at $ 110 a share." Qualcomm refers to the acquisition of Grace Pu semiconductor transactions. Fenghuang network technology
3. Wall Street Journal: Why Broadcom should give up Qualcomm?
It is not the same thing to do a deal to get a deal done. Broadcom Ltd., AVGO, should now keep in mind the benefits of the former situation.
This long weekend has brought even more headwinds to Broadcom's acquisition of Qualcomm Inc. Q: On the one hand, Broadcom's efforts to replace Qualcomm's board have been more or less favored by shareholder consultancies Glass Lewis and Institutional Services. On the other hand, QUALCOMM raised its offer for NXP Semiconductors NX (NXPI), significantly raising the possibility of reaching the deal.Carton increased the transaction value by 16% of the win, including Elliott Management Corp., several NXP Semiconductors, the key activist investors, these investors have been asking for a higher offer.
Broadcom had previously warned that if Qualcomm increased the price of the acquisition of NXP Semiconductors may lead the company to abandon the proposed acquisition of Qualcomm.Butong Tuesday morning criticized the move is Qualcomm NXP Semiconductors shareholders transfer value and pointed out that the The company is now evaluating various options. Broadcom shares rose as much as 2% in early trading Tuesday, closing 0.3% higher at $ 249.62.
The rise in Broadcom's shares appears to be a vote of approval for the company to abandon Qualcomm's bid, with Broadcom investors initially backing Qualcomm's proposal, and if the deal is completed, it will create the world's third-largest chip company by revenue. The deal will face close scrutiny by regulators, especially as several Chinese smartphone makers have voiced their opposition, with Broadcom streaking 10% below the company's announcement of Qualcomm's first bid before Tuesday's opening, The same period Philadelphia Semiconductor Index was flat.
The fact is Broadcom does not need the deal, and Broadcom's performance was already stunning before its acquisition of Qualcomm, which led Broadcom to a strong position in some of the key chip markets with rising free cash flow. So favored by Wall Street, proposed acquisition of Qualcomm, the coverage of research Broadcom analyst, about 93% given its buy rating, far more than any other large semiconductor company.As Bernstein's Stacy Rasgon pointed out, Broadcom's history is very clear .
The acquisition of Qualcomm may affect this image, and there has been a fundamental difference in how the two chipmakers operate, giving rise to questions about the extent to which they can be consolidated. Broadcom has so far barely publicly stated how its plans are reshaped Qualcomm to bring most of the profits of the authorized business, most of the other issues are not quite sure.
Broadcom may choose to maintain its current $ 82 "best and final offer," awaiting the Qualcomm shareholders' vote on March 6. This Broadcom strategy may have a role given Qualcomm's current share price is about 25% below its quotation.
However, it is worth mentioning that Institutional Shareholder Services did not fully recognize Broadcom's proposed alternative shareholder list and described Broadcom's acquisition proposal as a "reasonable starting point." At the same time, Broadcom investors seem to be envisioning a A Better End. The Wall Street Journal
4.ISS report pressured Qualcomm should be merged with Broadcom negotiations;
Institutional Shareholder Services (ISS), a prominent equity-brokerage consultancy in the United States, believes Broadcom's takeover bid for Qualcomm is a good starting point for the two parties to negotiate the largest mergers and acquisitions in the history of technology.
According to Bloomberg reports, ISS did not recommend Qualcomm shareholders vote in support of Broadcom's bid price of 82 dollars per share, instead of four of the 6 directors who voted for the Broadcom nomination in its February 17 release. , In order to prevent Broadcom from getting a majority in Qualcomm's 11-member board of directors, resulting in the failure of Qualcomm's board of directors to obtain the best conditions for mergers and acquisitions for shareholders.
The report from ISS will put more pressure on Qualcomm's leadership, which has rejected Broadcom's $ 121 billion offer, saying the offer is too low and subject to regulatory scrutiny, and that Qualcomm sees the company's business as a brighter future as ISS To Qualcomm poured cold water.
ISS wrote in the report that if Qualcomm's performance is comparable to Broadcom, its optimistic outlook for the future will resonate with shareholders even more. Broadcom's offer appears to be a good starting point for the two sides to negotiate and can take steps to improve its Certainty; or the eventual failure of the transaction will at least provide Qualcomm and its shareholders with a better safety net.
The ISS proposal is expected to get more support from Broadcom CEO Hock Tan, who has said he understands more about how to run the chip company than the current team at Qualcomm, Inc. Through a series of acquisitions, Mr. Chan made Broadcom its strategy based on At the same time, Qualcomm's management insisted on its strategy of investing heavily and trying to expand into new areas.
And Chen Fuyang's strategy has brought substantial revenue and profit growth Broadcom Broadcom shares compared to Chen Fuyang started a series of mergers and acquisitions rose 4 times to about 250 US dollars per share.
For Qualcomm's board of directors, the decision to reject the proposal will test shareholders' confidence in management, including the founder and son of chairman Paul Parsons and Steve Mollenkopf, who succeeded Jacobs as chief executive, all of whom are engineering-centric A member of the leadership team dedicated to bringing state-of-the-art dynamic die technology to new areas such as servers, PCs and automotives. DIGITIMES
5. Qualcomm will buy NXP quotations increased 16% to 44 billion US dollars was Broadcom criticism
According to Bloomberg's Beijing time on February 21, Qualcomm raised its bid for NXP Semiconductors on Tuesday and agreed with investors who threatened to stop the deal, triggering a sharp move by Broadbeam, a hostile bidder, Respond.
Qualcomm raised its bid for NXP to $ 127.50 a share, up 16% from its previous offer of $ 110 a share, to a total of $ 44 billion. In exchange, Qualcomm reached a binding agreement with nine shareholders of NXP In support of the deal, which owns more than 28% of NXP's shareholders, including activist investor Elliott Management.
This is by far the most provocative move by Qualcomm to defeat Broadcom's $ 121 billion hostile takeover bid, which will pressure Broadcom to decide whether to stick to the terms of its bid - Qualcomm may not raise its offer to NXP Which may strengthen Qualcomm's defensive capabilities as it allows shareholders to better gauge the independent value of Qualcomm without having to close a sales deal with Broadcom.
Qualcomm shares fell 1.3% to $ 63.99 on Tuesday, well below Broadcom's latest $ 82-plus cash and stock takeover bid on February 5. Investors believe Qualcomm's latest offer to NXP raised the company's hits Back Broadcom malicious acquisition of chances.
Broadcom said on Tuesday that it is evaluating options to respond to Qualcomm's latest move and believes the revised offer goes well beyond QUALCOMM's reaffirmed 'full and fair' offer to transfer the value of Qualcomm shareholders to NXP shareholders.
Broadcom believes the rise in quotes shows Qualcomm's board of directors ignoring its fiduciary duty - creating the most value for Qualcomm shareholders, Broadcom said in a statement after Qualcomm raised its offer.
In an interview, Qualcomm chief director Tom Horton argued that the revised offer reflects the value of Qualcomm shareholders, not the result of the acquisition war between Qualcomm and Broadcom.
"We think our shareholders want more certainty on NXP transactions," Holden said. "Qualcomm will be much stronger and will generate more profit whether or not we close deals with Broadcom."
Driven by the news, NXP shares rose 6% to 125.56 US dollars in the past seven months, NXP's share price has been higher than Qualcomm's initial offer, reflecting investors expect Qualcomm will raise prices.
Currently, only China's Ministry of Commerce has yet to approve Qualcomm's acquisition of NXP in global regulators.