Qualcomm to Broadcom ‘Let’s talk some more’

Following the last meeting between the two companies, which was held on February 23, Qualcomm has sent a response letter to Broadcom. In the letter, the company states that the meeting led to further progress toward a possible negotiated transaction on key issues other than price. However, in the letter Qualcomm states that its board still thinks that Broadcom’s offer undervalues the company and that further discussions are needed if this is to go forward. Qualcomm also proposed that the companies conduct mutual due diligence and look closer at each other’s books. Qualcomm says that its board and management team are fully committed to exploring with Broadcom; but is asking for some clarity of certain matters. “You have repeatedly declined to disclose your plan to change Qualcomm’s licensing business because you think such disclosure could pose issues under antitrust laws. Although we believe Broadcom is free to disclose this information, we are willing to jointly select a law firm with antitrust expertise that you would fully brief on your licensing plans,” the letter reads. The company also want to have further discussion, focused on price, and to arrange a meeting for this as soon as mutually convenient for both parties.