Qualcomm rejects Broadcom offer and extends timeline for NXP

February 12, 2018 // By Julien Happich
While it claims Broadcom undervalues its stock, Qualcomm has extended the offering period of its cash tender offer to purchase NXP Semiconductors' outstanding common shares. The offer which has been dragging for over a year without success is now scheduled to expire on February 23rd 2018.

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.

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