Broadcom Acting Like A Jilted Suitor As Qualcomm Says It’s Open To A Deal

A hostile takeover by Broadcom of Qualcomm has been getting headlines recently, with the former offering to buy the latter with $117 billion. However, the largest mobile processing manufacturer in the world scoffed at the number, saying that it was worth considerably more than that. On the other hand, Qualcomm did say that it was open to further negotiations, but it seems Broadcom is being really bitter about it.

As The Wall Street Journal notes, the biggest issue that Qualcomm has with regards to the prospect of getting bought by Broadcom is the price. The company basically wants a better offer to conclude the deal, which comes after coming to an understanding on several fronts, including regulatory concerns.

Following a meeting between executives of both companies on Friday, for example, Qualcomm Chairman Paul Jacobs invited Broadcom Chief Executive Officer Hock Tan for a discussion via letter, which was published on Monday. The letter essentially conveyed an offer of a nondisclosure agreement, which is meant to clear up a few issues regarding the deal, specifically the price.

Broadcom was not amicable to the move and has since shot back at the company it is eyeing, Bloomberg reports. The chip maker is basically accusing the higher-ups at Qualcomm of attempting to delay a shareholder meeting that is set to occur on March 6th, which could lead to the acceptance of the $117 billion offer with no further resistance.

“Qualcomm refused to confirm that it will hold its previously scheduled stockholder vote on March 6,” Broadcom said in a statement following the publication of Qualcomm’s letter. “Broadcom stands ready to negotiate its proposal on a comprehensive basis on terms that are realistic for both parties and their respective stockholders, but has not yet found a counterparty prepared to do the same.”