Qualcomm Encourages Broadcom To Enter Into Due Diligence, Price Negotiations

(RTTNews) - Qualcomm Incorporated (QCOM) announced its Board continues to believe that each of the proposals from Broadcom, including the $82.00 per share proposal, materially undervalued the company. Qualcomm proposed to enter into a non-disclosure agreement and beginning bilateral due diligence with Broadcom, given the large amount of Broadcom stock included in the proposal and to provide more granular details on the company's views on value.

"While we have made progress on regulatory and other deal certainty issues, you have continued to insist that your current $79.00 per share proposal is your best and final proposal. The Qualcomm Board continues to be of the unanimous belief that each of your proposals, including your prior $82.00 per share proposal, materially undervalues Qualcomm. This conclusion is based on substantial and thorough analysis," said Chairman of the Board Paul Jacobs, in a letter on behalf of the Qualcomm Board, to Hock Tan, CEO of Broadcom.

The Qualcomm Board believes the second meeting between the two companies led to further progress toward a possible negotiated transaction on key issues other than price. The Board authorized providing Broadcom with a mark-up of Broadcom's previously released draft merger agreement that, if agreed to by Broadcom, would resolve all issues between the two companies other than price.