Stockholm, Sweden – Veoneer has decided to hold on to Magna International’s takeover offer after receiving a higher offer from Qualcomm, although Veoneer says it will continue negotiations with Qualcomm.
Last month, Magna International of Aurora, Ontario made an offer of $31.25 a share for Veoneer, which was outbid Monday by Qualcomm, which offered a price of $37 a share.
Despite Qualcomm’s higher price tag, Veoneer said the merger agreement with Magna remains “in full force and effect” and the company’s board of directors has not withdrawn its recommendation to favor a deal with Magna.
“There is no assurance that Veoneer’s discussions with Qualcomm will result in a transaction that Veoneer’s board of directors believes is superior to Veoneer’s pending transaction with Magna,” said a statement from Veoneer.
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