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Bloomberg
Broadcom Ltd. plans to raise its bid for Qualcomm Inc. to around $120 billion, according to a person with knowledge of the matter, trying to force its target to come to the table in what would be the largest-ever technology deal.
The chipmaker is considering lifting its offer to about $80 to $82 per Qualcomm share, the person said, asking not to be identified because the information is private. Qualcomm Chief Executive Officer Steve Mollenkopf had dismissed Broadcom’s earlier proposal of $70 per share as not being worth consideration. Broadcom was expected to announce the new bid on Monday, the person said.
Broadcom CEO Hock Tan is putting pressure back on Mollenkopf and his board, who have so far refused to negotiate. By sweetening the offer, he’s also improving prospects for his nominations to Qualcomm’s board in a shareholder vote next month. A victory in that effort would void the current opposition.
The situation is fluid, and the exact level of the new bid hasn’t been finalised, the person said. Representatives for Broadcom and Qualcomm declined to comment. Reuters reported the plans for an increased bid earlier, citing unidentified people.
Broadcom’s hostile bid for the larger San Diego-based company is the latest and most audacious move by Tan in a string of deals that have made his company one of the world’s largest suppliers of semiconductors. He wants Qualcomm for its leading smartphone modem chip division, an example of what he calls a “franchise†that will continue to dominate.
Qualcomm has countered that its future is much brighter as a standalone company. That argument has been hurt by attacks on its licensing business. Regulators around the world are fining or investigating Qualcomm, supporting elements of Apple Inc.’s claims in a lawsuit against the company that it abuses its dominant position.