Sweden’s Veoneer announces he will start talks with Qualcomm over an offer

Aug 8 (Reuters) – Veoneer Inc (VNE.N) announced on Sunday that it would begin talks with chipmaker Qualcomm Inc (QCOM.O) after its bid for the Swedish auto parts maker last week exceeded a rival supply of Magna International Inc (MG. To).

Qualcomm’s offer could “reasonably result in a” superior proposition “as defined in the terms of Veoneer’s merger agreement with Magna,” the board said in a statement.

“Following the board’s decision, Veoneer may, under the terms of the merger agreement, enter into discussions with Qualcomm based on Qualcomm’s proposal and Veoneer intends to do so. “

Qualcomm announced on August 5 that it had offered $ 4.6 billion to buy Veoneer, an 18.4% premium over a July offer from Canadian Magna that had already been accepted by Veoneer’s board. Read more

Magna’s offer was worth around $ 3.8 billion.

Magna could not be immediately reached for comment.

Report by Vishal Vivek in Bangalore; Written by Vishal Vivek and Simon Johnson; Editing by Daniel Wallis

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