Veoneer to engage in discussions with Qualcomm
Swedish automotive technology company Veoneer, says that its board of directors has determined that Qualcomm’s proposal to acquire Veoneer would reasonably be expected to result in a “Superior Proposal”, compared with the company's merger agreement with Magna.
As a result of the board’s determination, Veoneer says that it intends to engage in discussions with Qualcomm. At the same time Veoneer says that the merger agreement remains in full force and effect, and the board of directors of Veoneer has not withdrawn or modified its recommendation that the stockholders of Veoneer vote in favour of the approval of the merger, the Merger Agreement and the transactions contemplated thereby. Under the terms of the merger agreement, prior to the receipt of the stockholder approval of the transaction, Veoneer may under certain circumstances terminate the agreement to enter into a transaction based on a competing proposal such as the Qualcomm Proposal.