On Monday, Broadcom Ltd made a “best and final offer” of $121 billion to acquire Qualcomm Inc, ratcheting up pressure on its U.S. semiconductor peer to engage in talks on what would be the biggest ever technology acquisition.
The takeover battle is at the heart of a race to consolidate the wireless technology equipment sector, as smartphone makers such as Apple Inc and Samsung Electronics Co Ltd use their market dominance to negotiate down chip prices.
On this deal, Qualcomm responded that its board of directors would review the latest offer, and declined to comment further until then.
Broadcom’s new $82 per share offer included $60 in cash and $22 in Broadcom stock. Its first offer, of $70 per share, in November comprised $60 in cash and $10 in stock. The increased stock component would subject the deal to a Broadcom shareholder vote.
Qualcomm shares fell 4.3 percent to $63.20 at mid-afternoon on doubts about the deal’s prospects, as well a KGI Securities report that said Apple might drop the chipmaker in favor of Intel Corp to supply modem chips for its next-generation iPhones.
Broadcom also announced concessions to address Qualcomm’s concerns that their combination could take more than 18 months to secure regulatory approval, and that divestitures demanded by antitrust watchdogs could be financially burdensome.