– Qualcomm (NASDAQ:QCOM) releases a letter the company sent to Broadcom (NASDAQ:AVGO) following Wednesday’s meeting.
– Qualcomm’s board says that Broadcom’s “best and final” offer of $82 per share “materially undervalues Qualcomm and has an unacceptably high level of risk, and therefore is not in the best interests of Qualcomm stockholders.”
– But the board found the meeting constructive since Broadcom seemed willing to agree to antitrust-related divestitures beyond what was included in the public merger agreement.
– And yet: Broadcom resisted agreeing to other regulatory commitments that could be required by the FTC, European Commission, and MOFCOM, to name a few. The company wouldn’t outline its intentions for Qualcomm’s licensing business, which could cause antitrust concerns, and insists on controlling all licensing business decisions between signing and closing.
– Qualcomm says it remains “open to further discussions” for a better offer