Broadcom cuts Qualcomm bid to $117 billion

Qualcomm President Cristiano Amon speaks at a press event in Las Vegas, Nevada. (AFP)
Updated 22 February 2018
0

Broadcom cuts Qualcomm bid to $117 billion

BENGALARU: Broadcom Corp. on Wednesday fired its latest salvo against Qualcomm Inc. by lowering its takeover offer to $117 billion from $121 billion, a day after the US chipmaker increased its own offer for NXP Semiconductors NV.
Broadcom’s previous $82 per share offer for Qualcomm was contingent on it buying NXP at its earlier offered price of $110 per share.
Broadcom said it had cut its offer to $79 per share due to Qualcomm’s increase of its price for NXP to $127.50 per share, but would revert to $82 per share if Qualcomm was unable to complete the NXP acquisition.
Under the new terms, Broadcom will offer Qualcomm shareholders $57 per share in cash and $22 per share in Broadcom shares.
Qualcomm could not be immediately reached for comment.
Broadcom said other conditions of the proposed merger agreement remained unchanged, including an $8 billion regulatory reverse termination fee.
The moves by both companies come in advance of a shareholders meeting on March 6 that is due to vote on Broadcom nominees to the Qualcomm board.
Qualcomm on Tuesday raised its offer for NXP by $17.50 per share from $110 and received support from nine NXP stockholders who hold more than 28 percent of the Dutch company’s outstanding shares and had previously resisted the takeover.
Qualcomm shares were down 0.5 percent at $63.65 in premarket trading and those of Broadcom were up 1 percent at $252.


‘Get prices down’ Trump tells OPEC

Updated 38 min 26 sec ago
0

‘Get prices down’ Trump tells OPEC

  • Trump highlights US security role in region
  • Comments come ahead of oil producers meeting in Algeria

LONDON: US president Donald Trump urged OPEC to lower crude prices on Thursday while reminding Mideast oil exporters of US security support.
He made his remarks on Twitter ahead of a keenly awaited meeting of OPEC countries and its allies in Algiers this weekend as pressure mounts on them to prevent a spike in prices caused by the reimposition of oil sanctions on Iran.
“We protect the countries of the Middle East, they would not be safe for very long without us, and yet they continue to push for higher and higher oil prices!” he tweeted.
“We will remember. The OPEC monopoly must get prices down now!”
Despite the threat, the group and its allies are unlikely to agree to an official increase in output, Reuters reported on Thursday, citing OPEC sources.
In June they agreed to increase production by about one million barrels per day (bpd). That decision was was spurred by a recovery in oil prices, in part caused by OPEC and its partners agreeing to lower production since 2017.
Known as OPEC+, the group of oil producers which includes Russia are due to meet on Sunday in Algiers to look at how to allocate the additional one million bpd within its quote a framework.
OPEC sources told Reuters that there was no immediate plan for any official action as such a move would require OPEC to hold what it calls an extraordinary meeting, which is not on the table.
Oil prices slipped after Trumps remarks, with Brent crude shedding 40 cents to $79 a barrel in early afternoon trade in London while US light crude was unchanged at about $71.12.
Brent had been trading at around $80 on expectations that global supplies would come under pressure from the introduction of US sanctions on Iranian crude exports on Nov. 4.
Some countries has already started to halt imports from Tehran ahead of that deadline, leading analysts to speculate about how much spare capacity there is in the Middle East to compensate for the loss of Iranian exports as well as how much of that spare capacity can be easily brought online after years of under-investment in the industry.
Analysts expect oil to trend higher and through the $80 barrier as the deadline for US sanctions approaches.
“Brent is definitely fighting the $80 line, wanting to break above,” said SEB Markets chief commodities analyst Bjarne Schieldrop, Reuters reported. “But this is likely going to break very soon.”