Earlier this month, Broadcom (AVGO 273.65, +1.79, +0.7%) made a $130 billion, or $70.00 per share, cash-and-stock offer to acquire Qualcomm (QCOM 66.38, -0.34, -0.5%). In doing so, it stepped up as the engineer of what would be the largest deal ever in the technology sector if it could be completed. Qualcomm investors, however, didn't think it could be completed -- not at that price anyway -- and neither did Qualcomm's Board of Directors, which rejected the proposal a week after it was made.
Price, however, wasn't the only stumbling block to getting the deal done. Antitrust concerns were also part of the equation regardless of Broadcom's conclusion that the deal should pass antitrust review.
Shares of QCOM traded as high as $66.82 before the company's Board of Directors rejected the proposal, yet it has not collapsed back to its pre-offer price of $61.81 even though the offer was rejected.
The stock's resilience implies some hope among investors that Broadcom will return with a higher offer that does a better job of enticing Qualcomm's board and its investors to agree to a merger.
There has been no indication that Broadcom will do that, yet there is a Bloomberg.com report today noting that an offer of $80.00 per share (or more) is likely needed to change Qualcomm's tune as more of its investors would feel compelled to sell at that price.
Strikingly, shares of QCOM are slightly lower today following the Bloomberg.com report. That suggests Qulacomm's investor base will let Broadcom do the actual talking before it gets too excited about a sweeter offer being made.
Right now, then, it's shaping up to be a waiting game that is expected to feature some type of follow-up move. If that wasn't the case, then the takeover pop in QCOM would have arguably been erased by now.