Broadcom Ltd. (NASDAQ: AVGO) reaffirmed its bid on Wednesday to acquire Qualcomm Inc. (NASDAQ: QCOM) by adjusting its offer $79 per share, lowering from its previous bid of $82 per share.
Last week, Qualcomm rejected Broadcom’s final offer of $121 billion, saying that being acquired by Broadcom would only undervalue the company and hurt its takeover attempt for NXP Semiconductors.
Broadcom lowered its bid for Qualcomm the day after the company raised its bid for NXP to $127.50 per share due to NXP’s recent strong performance.
Broadcom CEO, Hock Tan, previously said that a merger between Qualcomm and NXP would lower the value of the merged company. The company now says that Qualcomm is acting against the best interests of its shareholders.
“Broadcom believes that a responsible Qualcomm board could have preserved value by following ISS's clear recommendation to work with Broadcom on the NXP transaction and negotiate the sale of Qualcomm to Broadcom.” said Broadcom in a statement.
“Instead Qualcomm's board acted against the best interests of its stockholders by unilaterally transferring excessive value to NXP's activist stockholders. Despite this direct value transfer, Broadcom remains committed to delivering a value-maximizing offer to Qualcomm stockholders.” Broadcom continued.
Broadcom’s decision is contingent on Qualcomm’s NXP takeover, as the company says it will increase its bid by $3 per share to $82 if Qualcomm is unable to complete its NXP acquisition.
Aside from the new terms of the deal, the other agreements remain unchanged, including the $8 billion regulatory reverse termination fee.
“Broadcom remains confident that Qualcomm's stockholders will continue to support its proposal to acquire Qualcomm , and looks forward to concluding a transaction with this Qualcomm board of directors” said Broadcom.