“If at first, you don't succeed, raise the offer” seems to be the approach of Broadcom Ltd (NASDAQ:AVGO) in its pursuit of Qualcomm Inc (NASDAQ:QCOM).
Shares of Qualcomm surged 4.4% to US$69 in screen-based trading after Broadcom made what it says is its final offer of US$82 a share.
READ: Qualcomm rejects Broadcom's US$103bn takeover bid
Previously, Broadcom had made an offer worth US$70 as an opening shot but failed to bring the management of Qualcomm to the table to discuss a deal.
Qualcomm's stance has been that any bid would raise significant regulatory issues.
“This is the largest proposed technology transaction in history and will require thorough reviews from both antitrust regulators and national security groups in multiple countries around the world,” Qualcomm said last month in a letter to shareholders.
“Regulators in many countries may call for conflicting remedies based on their specific concerns. The regulatory process will be very long and complicated, and we believe it is highly doubtful that the proposed transaction will ultimately be approved,” Qualcomm argued.
Under the terms of the revised offer, Qualcomm stockholders would receive an aggregate of US$82.00 per each Qualcomm share, consisting of US$60.00 in cash and the remainder in Broadcom shares.
Shares in Broadcom were down 1% at US$233.10 in pre-market trading.
READ: Qualcomm shares rise as broker upgrades stock after Broadcom's hostile takeover bid
Broadcom's improved offer is contingent on either Qualcomm acquiring NXP Semiconductors on the currently disclosed terms of US$110 per NXP share or the transaction being terminated and is also contingent on Qualcomm not delaying or adjourning its annual meeting past March 6, 2018.
Qualcomm, which provides chips to carrier networks to deliver broadband and mobile data, has been trying to close its US$38bn acquisition of automotive chip-maker NXP Semiconductors after signing a deal in October 2016.
Broadcom remains confident that the proposed transaction would be completed within around 12 months following the signing of a definitive agreement.