Recently Broadcom announced that they would be placing a takeover bid for Qualcomm worth $130 billion, where it was reported that the company had offered to pay $70 per share. Qualcomm later rejected the bid in which they felt that what Broadcom had offered had undervalued the company.
Now it seems that we have an idea of how much Qualcomm’s investors are looking for, and that is $80 per share. According to a report from Bloomberg, it looks like Qualcomm’s investors are asking for at least an offer per share starting with the number “8”, meaning that $80 is probably as low as they’re willing to go.
However whether or not Broadcom is willing to pay that much remains to be seen, as Bloomberg reports that Broadcom Chief Executive Officer Hock Tan is known to be a tough negotiator. The report also claims that Tan’s previous purchases saw him not going over more than 6.8% of his opening offer, meaning that what Qualcomm is asking for is probably much more than what Broadcom is willing to pay for.
That being said, previous reports have suggested that if Broadcom’s offer is rejected, they could be looking at a takeover battle where Broadcom could try and push to replace Qualcomm’s board of directors for one that would be more favorable towards them.