Broadcom said Monday, Feb. 12, that it has raised $100 billion from a dozen banks and a private equity consortium including Silver Lake LP, KKR & Co. (KKR) and CVC.
Ahead of a Wednesday meeting with Qualcomm to discuss the bid, Tan appeared on CNBC to fan the rhetorical flames.
"Are Qualcomm shareholders better off today than four years ago?" Tan asked rhetorically. "The answer is no, they are 11% poorer," he answered, noting that Broadcom shareholders are "500% richer" during the time span.
Tan maintained that $82 per share is Broadcom's best and final offer. Qualcomm gained nearly 1.5% on Monday to $64.92, while Broadcom stock increased nearly 1.9% to $239.87.
Broadcom's bid values Qualcomm's equity at just more than $120 billion. Broadcom previously suggested that Qualcomm would have $25 billion in debt if it completed the purchase of NXP Semiconductors NV (NXPI), which would push the deal value above $145 billion.
The chipmakers have escalated their war of words as Qualcomm's March 6 shareholder meeting approaches. Broadcom has proposed a slate of directors to replace Qualcomm's board, but has said it would allow chairman Paul Jacobs and one other Qualcomm director to remain.
Qualcomm says Broadcom's bid does not reflect the value of its pending acquisition of NXP Semiconductors NV (NXPI) , resolution of its IP disputes with Apple Inc. (AAPL) and the opportunity to sell more chips as wireless networks introduce 5g technology.
"NXP will not solve Qualcomm's problems," Tan told CNBC. "It's a broken business model." Broadcom would "reset the business model over a period of time so that it's sustainable," he added. Qualcomm "fumbled" the transition to 4g, Tan suggested, and would do so with 5g.
Broadcom antitrust counsel Daniel Wall of Latham & Watkins LLP addressed Qualcomm's statement that the transaction faces great regulatory risk, in a statement released Monday
Qualcomm is "trying to hide behind a smokescreen of unspecified 'regulatory risk'" and "fomenting opposition to this deal in China," Wall suggested.
"Mergers get blocked when the antitrust issues are comprehensive, as in a deal like [the failed mergers of AT&T Inc. and T-Mobile US Inc. (TMUS) ] or [Echostar Corp. (SATS) and DirecTV]," Wall said, suggesting that that the acquisition of Qualcomm's "core baseband processor and mobile platforms business" does not pose antitrust problems. Broadcom would divest overlapping businesses in WiFi Networking Processors and radio frequency front-end chips.
Broadcom would not offer an $8 billion regulatory breakup fee, Tan said on CNBC, if he were not confident that he could close the deal.
"I'm kind of a frugal guy," he said.
Broadcom's massive financing rival's Son's Softbank Vision Fund, which has close to $100 billion and backs companies from ride-sharing market leaders Uber Technologies Inc. and Didi Chuxing Technology Co. to chipmakers Nvidia Corp. (NVDA) and Arm Holdings plc.
Silver Lake Partners previously agreed to provide Broadcom with $5 billion in convertible debt, which is its largest single commitment. KKR and CVC are newcomers.
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