Broadcom offers $8 bn to Qualcomm if deal is blocked

phys.org | 2/9/2018 | Staff
ajoy26 (Posted by) Level 3
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Singapore-based Broadcom said Friday it would pay rival Qualcomm $8 billion if regulators fail to approve a proposed merger between the two computer chip giants.

The "termination fee" offer came a day after California-based Qualcomm rejected a record $121 billion hostile bid as too low, while citing a risk that the proposed tie-up could be blocked by regulatory authorities.

Broadcom - Executive - Hock - Tan - Qualcomm

Broadcom chief executive Hock Tan said he welcomed Qualcomm's offer of talks on the takeover bid and suggested a meeting in the coming days.

"We urge you to meet with us without further delay, and stand ready to meet this Saturday or Sunday in New York or another mutually convenient location," Tan said in a letter to Qualcomm chairman Paul Jacobs.

Tan - Broadcom - Reverse - Termination - Fee

Tan said Broadcom is willing to pay an $8 billion "regulatory reverse termination fee" if the deal fails to win approval and to pay six percent interest as a "ticking fee" on the cash portion of the deal if it is not approved within 12 months.

But he said the $82 per share bid remained Broadcom's "best and final offer."

Firm—which - Plans - United - States—offered - Share

The Singapore-based firm—which has announced plans to move back to the United States—offered $60 per share in cash plus $22 in Broadcom...
(Excerpt) Read more at: phys.org
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