Qualcomm has firmly rejected Broadcom’s unsolicited offer to acquire the company, deeming the US$130 billion offered as a “significant undervaluation.”
Last week, Broadcom offered to acquire Qualcomm in a deal worth US$130 billion, including debt, which would equate to US$70 per share in cash and Broadcom stock for shareholders.
Broadcom said there are “compelling financial benefits” to such a deal and Qualcomm’s portfolio and global market reach would be complementary to Broadcom’s business. However, it seems that for now, at least, a merger is not on the table.
On Monday, November 13, Qualcomm said in a press release that the San Diego, California-based company’s Board of Directors has unanimously rejected the proposed deal.
“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 Qualcomm board.
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