Broadcom submits 'best and final' offer in attempt to acquire San Diego-based Qualcomm

Broadcom submits 'best and final' offer in attempt to acquire San Diego-based Qualcomm
Posted at 12:04 PM, Feb 05, 2018
and last updated 2018-02-05 15:04:43-05

SAN DIEGO (KGTV) - Chipmaker Broadcom submitted what it is calling its "best and final" offer for its San Diego-based rival Qualcomm.

On Monday, Broadcom announced that it increased its offer from $70 per share to $82 per share. The company's overall bid to take over Qualcomm now stands at over $121 billion.

Qualcomm officials confirmed that they "received a revised, non-binding, unsolicited proposal from Broadcom Limited to acquire all outstanding shares of Qualcomm for $60.00 per share in cash and $22.00 per share in Broadcom stock."

Company officials said the board of directors will review Broadcom's latest proposal and declined to comment further on the matter.

RELATED: Broadcom makes move in possible hostile takeover of rival Qualcomm

Broadcom has been trying to acquire Qualcomm rival for some time. In November, the company made an offer to buy Qualcomm for over $100 billion.

However, Qualcomm rejected the offer, stating Broadcom's proposal "dramatically undervalues Qualcomm and comes with significant regulatory uncertainty, and therefore is not in the best interests of Qualcomm stockholders."

In early December, Broadcom produced a list of people it planned to place in Qualcomm's Board of Directors.

Broadcom is incorporated and currently based in Singapore, but company president and CEO Hock Tan announced late last year while visiting President Trump at the White House that the company would return its corporate headquarters to the U.S., using San Jose as a base.

Buying Qualcomm would make Broadcom the third-largest chip maker, behind Intel Corp. and Samsung Electronics Co. The combined business would become the default provider of a set of components needed to build each of the more than one billion smartphones sold every year.

The company's hostile takeover attempt has come at a vulnerable time for Qualcomm, which has been embroiled in a long-running legal dispute with Apple and is facing several large fines from governing bodies across the globe. The most recent such fine levied against the San Diego company came from the European Union, which accused Qualcomm of breaking the EU's antitrust laws to the tune of $1.23 billion. Qualcomm said it would challenge that fine.

If Broadcom is ultimately successful in its takeover attempt, the impact on San Diego could be severe. Qualcomm is one of the few major corporations with a global reach to be headquartered in a city known mainly for tourism, and smaller defense and life sciences firms.

The company is one of the region's largest private employers, and the family of co-founder Irwin Jacobs is one of the area's most generous philanthropists.