US: Qualcomm agrees to negotiate with Broadcom

Qualcomm has said it will engage in negotiations with Broadcom, the clearest indication by the San Diego-based chipmaker that it is open to a potential takeover, reported CNBC.

After a meeting between executives from both companies on Friday, February 23, Qualcomm Chairman Paul E. Jacobs sent a letter to his rival, Hock Tan, published Monday, inviting Broadcom to enter into a nondisclosure agreement and conduct due-diligence talks in order to come to an agreement over price.

In a letter to Broadcom Chief Executive Hock Tan, Qualcomm proposed arranging a meeting focused on price as soon as mutually convenient for both parties.The letter comes ahead of a showdown on March 6, when Qualcomm shareholders are scheduled to elect an 11-member board and decide whether to hand control to a slate of six nominees put forward by Broadcom.

Broadcom cut its bid last week by 4% to US$117 billion after Qualcomm’s decision to raise its own bid for NXP Semiconductors to US$44 billion, a potential deal breaker for what would be the biggest ever technology merger.

Full Content: CNBC

Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.