US: Qualcomm boosts NXP bid as it resists Broadcom takeover

Qualcomm has boosted its bid for Dutch rival NXP Semiconductors, an increase that comes as the chipmaker faces a hostile takeover attempt by Broadcom, another technology giant.

Qualcomm said it would pay US$127.50 a share for NXP, up from an earlier offer of US$110, and reduced its threshold requirement on shareholder support from 80% to 70%. Qualcomm also said the proposal had the backing of NXP investors who had blocked the previous plan notably, Elliott Management Corp.

The amended agreement, worth roughly US$44 billion, will allow Qualcomm to purchase all outstanding shares of NXP following the announcement of the acquisition in 2016.

Broadcom’s offer for Qualcomm had been conditional on the latter’s bid for NXP not being raised. In a statement on Tuesday, February 20, Broadcom was sharply critical of Qualcomm’s Board, but ultimately softened its negotiating stance, saying, “the price increase demonstrates the Qualcomm board’s disregard for its fiduciary duty,” and “Broadcom is evaluating its options.”

Full Content: The Wall Street Journal

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