Microchip manufacturing company, Broadcom Limited, has slashed its bid for Qualcomm Inc. by 4 percent, ending at $117 billion. Broadcom raised objection to the decision taken by Qualcomm to raise its own bid for NXP Semiconductors NV to $44 billion.
Responding to Broadcom’s offer, Qualcomm said that the offer made by Broadcom had made “an inadequate offer even worse.” On March 6, the board of directors of Qualcomm will convene to decide whether to hand control to a team of six nominees that has been proposed by Broadcom.
If the deal works out, then the alliance between Broadcom and Qualcomm will be the largest acquisition in the technology sector ever. The acquisition has taken center stage as it will be consolidating the wireless technology equipment sector as companies like Samsung and Apple are dominating the market and negotiating lower chip prices.
In a statement, Broadcom said, “Qualcomm’s board acted against the best interested of its stockholders.” It further added that the bid raised by Qualcomm will result in overpaying for NXP and end up cutting its own bid.