Qualcomm unanimously rejects Broadcom

14 November, 2017, 00:38 | Author: Lorena Waters
  • FSMNews

According to the company's official statement released today, Qualcomm's board of directors "unanimously rejects" the "unsolicited proposal" put on the table by Broadcom.

Qualcomm has officially rebuffed Broadcom's acquisition offer, which would mark the biggest-ever deal in the tech industry.

"The board has concluded that Broadcom's proposal dramatically undervalues Qualcomm and comes with significant regulatory uncertainty", Qualcomm presiding director Tom Horton said in a statement.

Broadcom, meanwhile, is seeking to buy USA rival Brocade Communications in a deal being reviewed by Washington.

Steve Mollenkopf, CEO of Qualcomm believes that the chipset manufacturer holds an edge in the semiconductor industry and continues to provide value to stockholders.

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Cleveland Browns gave yet another game away
Detroit closed to within 10-3 with exactly 6:00 left in the initial period on Matt Prater's 46-yard field goal. Kizer was having his best game of the season before suffering a rib injury that forced him to the locker room.

USA chipmaker Qualcomm Inc (QCOM.O) is making preparations to reject rival Broadcom Ltd's (AVGO.O) $103 billion bid as early as this week, four people familiar with the matter said on Sunday, setting the stage for one of the biggest-ever takeover battles. Tan is known as a fierce cost cutter, who buys companies and eliminates overhead and cuts back on research and development. Qualcomm wants to power and connect every future device, an ambition it's not confident it could achieve while operating as a joint venture with Broadcom.

NXP shares have been trading above Qualcomm's offer price, as many NXP shareholders, including hedge fund Elliott Management Corp, have been holding out for a better price. "We believe Broadcom is likely to increase its bid, contributing to our increased price target". The deal could hinge on Qualcomm resolving a conflict with Apple, which has grown over the past year.

Qualcomm shares closed at $64.57 on Friday, while Broadcom ended at $264.96.

Do you think the deal would have been for or against the interests of Qualcomm?

On Monday, Qualcomm's (qcom) shares were up to nearly $66, though still below the $70 bid.

Broadcom makes chips for wired broadband communications, including modems, Wi-Fi, switches and routers.

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