Broadcom said the Qualcomm merger agreement includes $8 billion reverse termination fee payable to Qualcomm.
Broadcom CEO Hock Tan has accepted the invitation of Qualcomm Chairman Paul E. Jacobs to meet and discuss the merger proposal. They are expected to meet early next week to iron out issues including bid price and regulatory challenges in closing the deal.
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Broadcom CEO Hock Tan in a letter to Qualcomm Chairman Paul Jacobs said: “The deal is highly favorable to Qualcomm and its stockholders and includes an $8 billion regulatory reverse termination fee and 6 percent per annum regulatory ticking fee on the cash portion of the merger consideration. We want to reiterate that $82 per Qualcomm share is our best and final offer.”
Broadcom said it has received strong Qualcomm stockholder support for Broadcom’s $82 per share offer. The annual general meeting of Qualcomm will be conducted in March 2018 and Broadcom has sought to replace all the 12 member board of Qualcomm.