By Austen Hufford

Broadcom Ltd. lowered its offer to buy Qualcomm Inc. by about $4 billion in response to Qualcomm raising its offer to buy NXP Semiconductors NV.

Qualcomm on Tuesday raised its offer to buy NXP Semiconductors by more than $5 billion to $44 billion, and locked up support from key stakeholders.

Wednesday, Broadcom, which had opposed the increased offer for NXP, said in a securities filing Wednesday that it would lower its own bid for Qualcomm, citing the "value transfer" to NXP shareholders. Broadcom said its per-share offer of $79 consists of $57 a share in cash and $22 a share in stock. The proposal would be worth about $117 billion, compared with the $121 billion offer that had been on the table.

However Broadcom said it would revert to its previous $121 billion bid if the NXP deal doesn't go through.

Qualcomm and Broadcom have been maneuvering for months around what could be the largest tech deal ever. Broadcom sells a diverse line of equipment for networking and communications, including chips for Wi-Fi and Bluetooth technology that connect devices that are closer together. Qualcomm has looked to NXP to broaden its product line beyond its stronghold making chips for smartphones to automobiles, security and internet-connected devices.

Broadcom Chief Executive Hock Tan had previously stressed the company's offer for Qualcomm was dependent on the target not raising its price for NXP but recently softened his position, and the latest move Wednesday showed that he still wants the deal to succeed.

Broadcom and Qualcomm are headed toward a March 6 showdown in which Qualcomm shareholders are scheduled to vote on a slate of directors nominated by Broadcom.

In another recent concession, Mr. Tan reduced his number of candidates from 11 to six, seeking a majority rather than trying to unseat the entire Qualcomm board.

Shares in Broadcom rose 1% in morning trading, while Qualcomm's fell 1.8%

Write to Austen Hufford at austen.hufford@wsj.com

(END) Dow Jones Newswires

February 21, 2018 11:46 ET (16:46 GMT)

Copyright (c) 2018 Dow Jones & Company, Inc.
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