Qualcomm rejects Broadcom $103 billion offer

Wednesday, 15 November 2017, 06:33:55 AM. The San Diego-based chipmaker says the offer undervalues the company.
San Diego-based on Monday rejected rival 's unsolicited $103 billion bid as too low, “It is the Board’s unanimous belief that Broadcom’s proposal significantly undervalues Qualcomm relative to the company’s leadership position in mobile technology and our future growth prospects,” said Paul Jacobs, executive chairman and chairman of the board of Qualcomm, in a statement. Qualcomm also said that the bid “comes with significant regulatory uncertainty.” Broadcom offered $60 a share in cash and $10 in stock for Qualcomm – a 28 percent premium over the company’s share price before news of the bid leaked on Nov. 3 — making it the largest tech deal ever. When including Qualcomm’s debt, the deal is valued at $130 billion, or double the value of Dell’s then record-setting $65 billion purchase of EMC in 2015. Broadcom responded Monday with a news release reasserting its commitment to the acquisition. “We continue to believe our proposal represents the most attractive, value-enhancing alternative available to Qualcomm stockholders and we are encouraged by their reaction,” Broadcom CEO Hock Tan said in a statement. “Many have expressed to us their desire that Qualcomm meet with us to discuss our proposal. It remains our strong preference to engage cooperatively with Qualcomm’s Board of Directors and management team.” If a deal is completed, the combined companies would have annual sales of $51 billion – trailing only Intel and Samsung in the semiconductor industry. Any deal will face...Read more
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