Qualcomm Says It Will Keep Talking to Broadcom
Feb 26, 2018, 8:26 AM by Eric M. Zeman
Qualcomm today said it will move forward with acquisition talks with Broadcom even though it has officially rejected the company's offer of $79 per share. Qualcomm suggested the two firms perform negotiations for sale items other than price. For example, it believes the two firms should begin bilateral due diligence to inform their discussion, agree to an approach on handling Qualcomm's licensing business, and finalize other non-price terms, such as how regulatory hurdles might be cleared. Separately, however, the company wants to engage with Broadcom directly on pricing as soon as possible. Qualcomm has repeatedly said that Broadcom's offer undervalues the company. Further, it says Broadcom hasn't provided reassurances regarding regulatory concerns. Qualcomm hopes that keeping an open line of dialog helps bridge the gap between these differences.
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