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 U.S. dollars. In exchange, Qualcomm entered into 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's shareholders to NXP's 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.