Qualcomm to Discuss Next Steps Following Meeting With Broadcom
Qualcomm Inc said on Wednesday it met with Broadcom earlier in the day to discuss the latter's revised $121 billion bid, and Qualcomm's board will determine next steps.
The outcome of the meeting will determine whether Qualcomm, which has resisted Broadcom's takeover approach since November, will engage in negotiations or continue to defend itself by rallying its shareholders, who are scheduled to vote on March 6 on replacing the majority of its board with Broadcom nominees.
Neither side commented on what was said during the two-hour meeting.
"We met with representatives of Broadcom for two hours earlier today, and listened carefully to what they had to say. The Qualcomm Board will promptly meet to discuss the meeting and to determine next steps," Qualcomm said.
Qualcomm has rejected Broadcom's revised cash-and-stock bid of $82 per share last week and said the new offer still undervalued it and fell well short of the firm commitments on regulatory issues it expected.
Broadcom's connectivity chips are used in products ranging from mobile phones to servers. Qualcomm primarily outsources the manufacturing of its chips which are used for the delivery of broadband and data.