Veoneer Inc. said Sunday it would start talks with chipmaker Qualcomm Inc. after its offer for the Swedish auto parts maker last week topped a rival bid by Magna International Inc.
Qualcomm's offer could "reasonably be expected to result in a 'Superior Proposal,'" as defined under the terms of Veoneer's merger agreement with Magna," the auto tech company's board said in a statement.
"As a result of the Board's determination, Veoneer may under the terms of the Merger Agreement engage in discussions with Qualcomm based on the Qualcomm Proposal and Veoneer intends to do so."
If Veoneer ultimately accepts the Qualcomm offer as "Superior," then Magna would be entitled to a termination fee of $110 million.
Veoneer shares fell 2.5 percent to $37.67 in early trading on Monday.