In a statement Monday, Broadcom said it offered Qualcomm shareholders $US60 in cash and $US10 per share in Broadcom shares. The offer represents a 28% premium to Qualcomm’s closing price on Thursday, before initial reports of a deal.
“Our proposal provides Qualcomm stockholders with a substantial and immediate premium in cash for their shares, as well as the opportunity to participate in the upside potential of the combined company,” said Hock Tan, Broadcom’s CEO, in a statement.
“This complementary transaction will position the combined company as a global communications leader with an impressive portfolio of technologies and products,” Tan said. “We would not make this offer if we were not confident that our common global customers would embrace the proposed combination.”