Google Inc (GOOG.O) raised its offer for Motorola Mobility Holdings Inc (MMI.N) by 33 percent to $12.5 billion over two weeks of negotiations between the two companies, according to a regulatory filing on Tuesday.
Google originally offered $30 for every Motorola share on August 1 -- but eventually paid $40 -- as the Internet powerhouse sought Motorola's massive patent portfolio, after losing out on the Nortel patent auction to a consortium including Apple (AAPL.O) and Microsoft (MSFT.O).
On August 5, Frank Quattrone's Qatalyst Partners, who advised Motorola on the deal, suggested the company reject the initial bid and seek an offer of $43.50 a share instead, according to a filing by Motorola with the U.S. Securities and Exchange Commission.
On August 9, Google came back with an offer of $37 per share, but Sanjay Jha, Motorola's CEO, said he would be prepared to recommend that the company consider accepting an offer of $40.50 a share or higher.
On the same day, Google raised its price to $40 per share, and proposed to start due diligence and announce the merger by August 14.
The companies ultimately announced the merger on August 15, settling at $40 per Motorola share -- a 63 percent premium to Motorola's previous trading day close.
(Reporting by Abhiram Nandakumar, Brenton Cordeiro and Savio D'Souza in Bangalore; Editing by Gary Hill)