Qualcomm slides after Broadcom sweetens its offer to buy the chipmaker for $121 billion
- Rival chipmaker Broadcom raised its bid for Qualcomm by 24% to $121 billion in a cash and stock offer.
- The offer would value Qualcomm at $82 per share.
- The bid was meant to bring Qualcomm back to the negotiating table, ahead of Qualcomm's shareholder meeting on March 6.
- Watch Qualcomm's shares move in real time here.
Shares of Qualcomm were down on Monday morning after Reuters reported that rival chipmaker Broadcom had raised its offer to buy the company by 24% to $121 billion.
The new offer was meant to coax Qualcomm back to the negotiating table after past bids to buy the company had failed. Qualcomm rejected Broadcom's last bid in November of $70 per share that would value the company at $105 billion.
Under the new offer, Qualcomm would be valued at $82 per share. Qualcomm's shareholders would expect to receive $60 in cash per share and $22 worth of Broadcom shares.
Qualcomm's stock was down 2.32% at $64.54 per share. Broadcom's shares rose 0.81% at $237.38 per share on the news.
The San Diego-based Qualcomm was in the process of potentially acquiring NXP Semiconductors NV at $110 per share, or $38 billion, but the new bid by Broadcom could force their hand to make a quick deal or withdraw from the deal entirely.
Qualcomm is scheduled to hold a shareholder meeting on March 6. Broadcom is expected to seek to put its own nominees up for election to Qualcomm's board of directors, Reuters reported.
In the last round of negotiations with Broadcom, Qualcomm said that any deal would still be subject to intense international regulatory scrutiny. Last month, Qualcomm was handed a $1.2 billion fine for alleged anticompetitive practices by the European Commission.
Qualcomm's stock was up 1.33% for the year.
