Veoneer to Hold Talks With Qualcomm on $4.6 Billion Bid
August 09 2021 - 5:26AM
Dow Jones News
By Colin Kellaher
Veoneer Inc. said it plans to hold takeover talks with Qualcomm
Inc. after the Swedish automotive-technology company's board
determined that Qualcomm's surprise $4.6 billion bid would
reasonably be expected to result in a superior proposal to
Veoneer's current agreement to be acquired by Magna International
Inc.
San Diego chip maker Qualcomm last week said it offered to pay
$37 a share for Veoneer, topping by 18.4% the $31.25 auto-parts
giant Magna agreed to pay last month when it struck a deal to buy
Veoneer.
Veoneer said its agreement with Magna allows the Stockholm
company to accept a superior proposal and walk away from the Magna
deal in exchange for a $110 million breakup fee.
Magna last week said it was evaluating its options and
considering next steps, adding that it plans to be disciplined in
its approach and that it is committed to earning good returns on
investments.
Shares of Veoneer closed Friday at $38.69, above Qualcomm's bid,
in an indication that investors may think a bidding war is in the
offing. The share slipped 3.3% to $37.42 in premarket trading
Monday.
Write to Colin Kellaher at colin.kellaher@wsj.com
(END) Dow Jones Newswires
August 09, 2021 06:14 ET (10:14 GMT)
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