Qualcomm rejects Broadcom takeover offer

Monday 13 November 2017 | 16:22 CET | News

Qualcomm has rejected Broadcom's unsolicited takeover offer, sating it "significantly undervalues" the company. Broadcom announced the USD 130 billion bid a week ago, offering a 28 percent premium on Qualcomm's latest share price. 

Qualcomm said its board conducted a "comprehensive review" with financial and legal advisors of the offer and the conclusion was that it "dramatically undervalues Qualcomm and comes with significant regulatory uncertainty". Director Tom Horten said in a statement: "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."

Broadcom said in response that it "remains fully committed" to pursuing the acquisition. CEO Hock Tan said in a statement that "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." There was no suggestion that the company intends to improve its bid. 

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