Saturday, 18 November, 2017

Qualcomm rejects Broadcom's acquisition offer worth $103 Billion

Reuters Reuters
Garry Little | 14 November, 2017, 00:40

The spontaneous proposition of Broadcom added up to US$70 per share, which included US$10 in stock and US$60 in real money, or 28% more than the end cost of Qualcomm on Thursday, November 02, 2017, preceding the reports of the merger surfaced.

Qualcomm said the decision to reject Broadcom's offer was unanimous.

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.

The proposal "significantly undervalues Qualcomm relative to the company's leadership position in mobile technology and our future growth prospects", said Paul Jacobs, Qualcomm's executive chairman, in a statement.

"Many have expressed to us their desire that Qualcomm meet with us to discuss our proposal", Tan said in his statement.

San Diego-based Qualcomm said the bid undervalues the company's position in thriving areas in the semiconductor industry like mobile, "internet of things", automotive, edge computing and.

"We are highly confident that the strategy (CEO Steve Mollenkopf) and his team are executing on provides far superior value to Qualcomm shareholders than the proposed offer", said Tom Horton, Qualcomm director.

Reuters , citing "four people familiar with the matter", claims that Qualcomm's board of directors will review the $103 billion heavy offer, and could reply negatively straight away.

Qualcomm has been facing a series of investigations around the world linked to its dominance in the smartphone chip segment. After consulting with its financial advisors, the company concluded that Broadcom's $70-per-share proposal represents a significant undervaluation.

This is just not how these big acquisitions work, usually, these companies sit together, work for a while and try to negotiate important details and then go to the public. Broadcom has indicated it is willing to acquire Qualcomm irrespective of whether it closes the NXP deal. Tell us down in the comments.


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