Bon will increase its bid for high Qualcomm to push the latter to agree to negot
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On Sunday, a source familiar with the situation said that Broadcom, a communications chip maker, proposed a new bid of about $120 billion on Monday to interindustry Qualcomm (QCOM.O), aiming to put pressure on the latter to sit at the negotiating table, AVGO.O.
Qualcomm will hold a meeting of shareholders in March 6th, and Bo Tong hopes that many of its nominees will enter the Qualcomm board.
Two sources said he was scheduled to meet with a consultant later on Sunday to finalize the bid, and the new bid was valued at $80-82 per share for Qualcomm. Bon's previous $70 per share bid included $60 in cash and $10 in stock.
The source said that if the regulatory authorities were to stop the deal, it was also going to pay higher than the general level of breakup. Generally speaking, the breakup fee is approximately equal to the 3-4% of the transaction amount.
The source warned that the chief executive of Hock Tan may decide to make a major adjustment to these terms at the end of the day.
Because of the confidentiality of the related considerations, the sources asked for anonymity. Bo Tong and Qualcomm did not immediately respond to requests for comment.
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