Qualcomm's initial offer for the acquisition of NXP was noticeably undervalued, even more so now since NXP's shares have consistently increased over the last year.
The irony is that a day prior to extending its offer to NXP, Qualcomm's Board of Directors wrote a letter to Broadcom's President and CEO Hock Tan to unanimously reject the revised Broadcom proposal, arguing that at $82.00 per share ($60.00 in cash and $22.00 in Broadcom stock), it feels undervalued by the company.
However, Qualcomm's rejection may not be final. "Exploring all options for maximizing shareholder value", the Board of Directors would be prepared to meet with Broadcom's CEO, it writes in the letter, expecting Broadcom's explanations on how the company could possibly bridge the gaps Qualcomm sees, both in value and deal certainty.
As well as depreciating the $82 per share offer, the letter also refers to the potential acquisition of NXP, which it says was not duly taken into consideration in this hostile bidding.