Broadcom cuts Qualcomm bid to $117 billion

(Reuters) - Broadcom Corp (AVGO.O) on Wednesday fired its latest salvo against Qualcomm Inc (QCOM.O) by lowering its takeover offer to $117 billion from $121 billion, a day after the U.S. chipmaker increased its own offer for NXP Semiconductors NV (NXPI.O).

Broadcom’s previous $82 per share offer for Qualcomm was contingent on it buying NXP at its earlier offered price of $110 per share.

Broadcom said it had cut its offer to $79 per share due to Qualcomm’s increase of its price for NXP to $127.50 per share, but would revert to $82 per share if Qualcomm was unable to complete the NXP acquisition.

Under the new terms, Broadcom will offer Qualcomm shareholders $57 per share in cash and $22 per share in Broadcom shares.

Qualcomm could not be immediately reached for comment.

Broadcom said other conditions of the proposed merger agreement remained unchanged, including an $8 billion regulatory reverse termination fee.

The moves by both companies come in advance of a shareholders meeting on March 6 that is due to vote on Broadcom nominees to the Qualcomm board.

Qualcomm on Tuesday raised its offer for NXP by $17.50 per share from $110 and got support from nine NXP stockholders who hold more than 28 percent of the Dutch company’s outstanding shares and had previously resisted the takeover.

Qualcomm shares were down 0.5 percent at $63.65 in premarket trading and those of Broadcom were up 1 percent at $252.