Qualcomm Spurns $130B Broadcom Takeover Bid As Too Low


Qualcomm draws up plans to rebuff Broadcom's $103 billion offer: sources

Mobile chipmaker Qualcomm on Monday rejected rival Broadcom Ltd.'s $103-billion takeover bid, saying the offer undervalued the company and would face regulatory hurdles. Qualcomm has more, including the soon to finish NXP acquisition, a great patent portfolio, high-end phone SoC leadership, Modem and WiFi leadership in 4G and 5G and even automotive, the world's first 10nm server and Windows 10 holding great Snapdragon potential. Broadcom has said it would prefer amicable negotiations, but a person familiar with Chief Executive Hock Tan's thinking believes he would be willing try to elect directors to Qualcomm's board who will favor the deal.

US 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.

In an email, a Qualcomm spokesperson said the company "won't have any comment beyond this statement".

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Qualcomm provides chips to carrier networks to deliver broadband and mobile data.

With that amount of money, one has to imagine that Qualcomm at least considered the offer. Broadcom bid $5.5 billion previous year for data center-connectivity company Brocade. But antitrust authorities already have challenged Qualcomm's business practices in several countries, and the combined companies would hold a dominant position in the wireless industry. "It adds flexibility to the Qualcomm side because they realize there's enhanced value in getting this settled quickly: a better chance of staying independent", he said. The deal has been delayed by the Committee on Foreign Investment in the United States, which investigates proposed acquisitions of USA companies by foreign buyers on national security and intellectual property grounds.

"Many have expressed to us their desire that Qualcomm meet with us to discuss our proposal". "We are confident in our ability to create significant additional value for our stockholders as we continue our growth in these attractive segments and lead the transition to 5G".

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