Stockholm, Sweden — Veoneer has decided to stick with Magna International’s acquisition bid after being courted with a higher offer from Qualcomm, though Veoneer says it will continue in negotiations with Qualcomm.
Last month, Aurora, Ont.-based Magna International put forth a $31.25 per share bid on Veoneer which was outbid by Qualcomm on Monday, who offered a price of $37 per share.
Despite the bigger price tag from Qualcomm, Veoneer said its merger agreement with Magna remains “in full force and effect” and the company’s board has not withdrawn its recommendation favoring a deal with Magna.
“There can be no assurances that Veoneer’s discussions with Qualcomm will result in a transaction that the Veoneer board of directors determines is superior to Veoneer’s pending transaction with Magna,” read a statement from Veoneer.
