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Broadcom raises offer to buy Qualcomm to $121 bn, calls it the final offer

The new offer values the company at $82 per share - a premium of 24 per cent from Qualcomm's close on Friday


A Qualcomm sign is pictured at one of its many campus buildings in San Diego, California, U.S (Photo: Reuters)

Chipmaker Ltd on Monday raised its offer to buy Inc by 24 per cent to more than $121 billion, sweetening the bid and putting more pressure on its rival to come to the table for negotiations.

"and its board now have a tough decision as this is a compelling offer in our opinion," said analyst of

The new offer values the company at $82 per share - a premium of 24 per cent from Qualcomm's close on Friday. It also puts pressure on to either buy at $110 per share or terminate the $38 billion deal.

NXP shareholders had held up a deal, saying it undervalued the company and had sought a price as high as $135.

shares were down 3 per cent at $64 in premarket trading.

They were up 25.5 per cent in the last 12 months as of Friday's close.

shares were fell 2 per cent to $239. NXP shares were slightly down at $120.10.

in November rejected Broadcom's $70 per share cash-and-stock bid that valued the company at $103 billion.

In the new offer, shareholders would get $60 in cash and the $22 in shares. Broadcom's previous $70 per share offer consisted of $60 per share in cash and $10 per share in stock.

"We believe is serious and aggressive around acquiring and this higher bid reflects that," Ives said.

Qualcomm, which had said Broadcom's offer significantly undervalued the company, could not immediately be reached for comment.

Reuters reported exclusively on Sunday that had planned to raise its offer.

After rejected its earlier offer, and private equity firm took the offer hostile by nominating 11 directors to its board in December. later rejected the nominees.

Shareholders will vote for or against the nominees at an annual meeting on March 6.

Singapore-based is known for its used in products ranging from mobile phones to servers and provides chips to mobile carrier networks to deliver and data.

said on Monday it remained confident that the deal would be completed within 12 months following a definitive agreement.

had said that the regulatory review processes required around the world would take much longer.

Any deal between the two would attract significant scrutiny across several countries where they operate.

The in January made a second request for information on Broadcom's bid.

First Published: Mon, February 05 2018. 19:40 IST