Broadcom made an unsolicited $130 billion bid to acquire Qualcomm earlier this month. The company hasn’t put itself up for sale but Broadcom went ahead and bid $70 per share for the company anyway. Qualcomm took a few days to respond and ended up rejecting the bid. A recent report suggested that the company would be willing to sell at a higher price. Broadcom is now reportedly considering a revised bid for Qualcomm.
Broadcom is reportedly considering raising its offer to buy Qualcomm by offering more of its stock after consultations with several top Qualcomm shareholders, according to Reuters.
It’s unclear at this point in time when Broadcom is going to make its revised offer. Its ongoing preparations seem to suggest that it’s planning to apply pressure on Qualcomm to take part in negotiations. It plans on doing that by offering more to its shareholders and even threatening to replace Qualcomm’s board of directors.
Broadcom Chief Executive Hock Tan has previously said that he’s open to a takeover battle and that Broadcom is preparing to submit nominations for new directors by Qualcomm’s December 8th deadline.
Some of Qualcomm’s shareholders have indicated to Broadcom that they expect at least $80 per share to consider a deal. However, Broadcom’s board hasn’t decided on the level of any new offer just yet.