Veoneer to Hold Talks With Qualcomm on $4.6 Billion Bid

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 [e-mail]

(END) Dow Jones Newswires

August 09, 2021 06:14 ET (10:14 GMT)

Copyright (c) 2021 Dow Jones & Company, Inc.