Magna offered $31.25-a-share for Veoneer in July. Once Qualcomm and Veoneer reach an agreement on the offer, Magna has the right to make a counter bid.
The Canadian auto supplier may struggle to compete with Qualcomm, which has a market value of $162 billion and almost $13 billion in cash and equivalents, according to data compiled by Bloomberg. Magna, in comparison, has a market capitalization of about $24 billion and $3.4 billion in cash, the data show.
Dan Levy, a Credit Suisse Group AG auto analyst, said last month that he didn’t expect Magna would pursue a topping bid because investors were already wary of the planned acquisition.
Qualcomm has been trying to expand its reach beyond smartphones. Automotive products accounted for around 3 percent of chip sales last year and have been growing slowly in recent quarters.