Earlier this month, Broadcom stunned the tech community when rumors suggested it was seeking a buyout deal of Qualcomm, one of the largest producers of mobile processors in the world. The offer Broadcom came to the table with was for $130 billion, which gave Qualcomm’s shares a valuation of around $70 per share. The board of directors recommended shareholders reject the deal, which they eventually did.
One hedge fund manager says shareholders are holding out for a deal that’s in the $80 range.
“We would be very interested in evaluating an offer that begins with an 8. [The board] should urge Broadcom to come back with a higher bid.”
Some analysts believe Qualcomm’s investors will be much more open to Broadcom’s offer were it to be increased to the $80 range, with some even going so far as to call it a done deal at that point. Qualcomm has been beset on all sides with problems this year, as its continued legal battle with Apple over unpaid royalty fees continues to dog the company’s resources.