Qualcomm, Inc. (NASDAQ: QCOM) stumbled after Broadcom Limited (NASDAQ: AVGO) significantly raised its offer for the company.
A news release out Monday revealed how the San Diego-based Qualcomm received a revised, non-binding, unsolicited proposal from Broadcom to acquire all outstanding shares of Qualcomm for $60.00 per share in cash and $22.00 per share in Broadcom stock.
Consistent with its fiduciary duties, the Qualcomm Board of Directors, in consultation with its financial and legal advisors, will review the revised proposal to determine the course of action it believes is in the best interests of the Company and its stockholders. Qualcomm will have no further comment on the proposal until its Board of Directors has completed its review.
Last November, Qualcomm's Board of Directors unanimously rejected Broadcom's non-binding, unsolicited proposal to acquire Qualcomm for per share consideration of $60.00 in cash and $10.00 in Broadcom stock. After a comprehensive review, conducted in consultation with its financial and legal advisors, the Board concluded that Broadcom's proposal dramatically undervalues Qualcomm and comes with significant regulatory uncertainty, and therefore is not in the best interests of Qualcomm stockholders.
Qualcomm trumpets inventions which it says “are the foundation for life-changing products, experiences, and industries.
"As we lead the world to 5G, we envision this next big change in cellular technology spurring a new era of intelligent, connected devices and enabling new opportunities in connected cars, remote delivery of health care services, and the IoT — including smart cities, smart homes, and wearables."
QUALCOMM shares demurred $1.77, or 2.7%, to $64.30, while Broadcom shares rocketed $6.61, or 2.8%, to $242.09