Qualcomm turns down Broadcom's $130B acquisition bid

Qualcomm will reportedly turn down Broadcom's $100 billion offer

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 officially rejected the initial bid today, which was for $105 billion (it was originally reported to be around $130 billion).

Despite that, it seems that Broadcom's offer wasn't enough for Qualcomm's board of directors.

Qualcomm Inc. on Monday rejected Broadcom Ltd.'s $130 billion takeover bid, contending the offer "dramatically undervalues" the company's position in mobile technology and comes with "significant regulatory uncertainty".

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.

Last week, Broadcom made an unsolicited offer to buy Qualcomm, one of the biggest SoC and cellular modem manufacturers for smartphones.

U.S. semiconductor and telecommunications firm Qualcomm rejected a $103bn takeover bid from competitor Broadcom on Monday, saying the offer "dramatically" underestimated the value of the company.

SNL's Sessions: Roy Moore a Little 'Too Alabama'
Pence reminds Moore that the girl accusing him was 14 years old, and that he needs to "do the right thing". Mike Lee in withdrawing support for Moore amid allegations of decades-old sexual advances on girls.

As such, Qualcomm expects to generate "significant additional value" for shareholders in the future, especially with the prospect of 5G networking on the horizon.

The sources said that Broadcom has also been considering the likelihood of increasing its bid for Qualcomm, including through more debt financing.

Broadcom's proposal came days after its CEO Hock Tan appeared at the White House with President Donald Trump to announce plans to move the tech company back to the United States from Singapore. Qualcomm and Broadcom did not immediately respond to requests for comment.

Overall, Broadcom's bid is a very ambitious attempt to grow its share of the market for components that go into mobile phones.

Shares of Qualcomm were up 1.8 percent at $65.74 in early afternoon trading, while those of Broadcom were down 0.4 percent at $263.95.

Related:

Comments

Latest news

Samsung quietly confirms the new Galaxy A5
Apart from hinting at the imminent launch, the FCC listing also reveals that the smartphone will have a dual-band Wi-Fi support. The leaked renders revealed that both the smartphones will come loaded with Infinity displays and dual front-facing cameras.

Xbox One X Sells 80000 In The First Week In The UK
Microsoft has announced its Black Friday sale and, if you've been waiting to pick up an Xbox One S console, this one's for you. Save up to $329 on new Surface bundles: $329 off the Surface Pro i5 256GB and $229 off the Surface Pro i5 128GB .

Hate crimes up in California, and United States , for second consecutive year
There were 40 hate crimes reported in the state previous year , the highest number of bias-related incidents since 2010. The latest statistics are based on voluntary reporting from almost 16,000 United States law enforcement agencies.

China, Vietnam leaders reach South China Sea consensus
Since Trump took office, priorities in the region lie elsewhere, with USA focus largely on containing the North Korean threat. Trump said in Vietnam on November 12 before leaving to attend a summit of Asian leaders in the Philippines.

Lions rally past Browns for 17-10 halftime advantage
Greg Robinson, who started the first six games of the season at left tackle, was waived-injured on Friday with an ankle injury . Kizer was having his best game of the season before suffering a rib injury that forced him to the locker room.

Iran rejects Macron call for talks on Iranian missiles
Washington has also called for the United Nations to hold Tehran accountable for violating two United Nations security Council resolutions.

LSU's next opponent, Tennessee, fires its head coach
Before the 2017 season, Jones had led Tennessee to two nine-win seasons during the 2015 and 2016 season, respectively. I know Coach Jones will be successful moving forward, and we wish him all the best in his future endeavors.

Southgate names experimental England team to face Germany in Wembley friendly
So for me to get to that next level I needed to play regular football. I want to develop skills and get better as a player. Gareth said to do my best like I normally do.

Disneyland Shuts Down Two Cooling Towers After Visitors Sickened With Legionnaires' Disease
Hymel said that local health officials had assured them that there was no longer any risk to guests or employees of the park. Symptoms of legionellosis develop 2-10 days after exposure, and include fever, chills, cough, muscle aches, and headaches.

Bottas clinches pole after Hamilton crash
He had come in with a huge lead over Vettel and secured the crown despite a ninth-place finish (two points), his worst of the 2017 season.

U.S. goalkeeper accuses former Federation Internationale de Football Association president of sexual harassment
After the entertainment industry and the media, accusations of harassment and sexual assault are gaining the world of sports. In 2004, he argued that the popularity of the women's game could be boosted if the players wore tighter shorts .

Oklahoma Woman Accused Of Marrying Her Mother Receives Deferred Sentence
Taking a plea deal to avoid 10 years in prison, Misty has been ordered to do 10 years on probation and seek counselling. She wrote a book about the lust she felt for the adult son she had given up for adoption 26 years earlier.

Tunisia complete Africa's World Cup line-up with Libya draw
Morocco completed the campaign without conceding a goal, finishing on 12 points, four ahead of the Ivorians. Morocco sealed its place in Russian Federation in style as they went to Abidjan and beat Cote d'Ivoire 2-0.

Internet giant Alibaba kicks off Singles' Day shopping bonanza with a bang
The day was unremarkable until 2009, when Alibaba turned the occasion into an online shopping festival. The date was chosen because 11-11 resembles four "bare sticks", the Chinese term for bachelor.

Three US supercarriers to conduct joint drills in waters off Korean peninsula
Pacific Fleet Commander Admiral Scott Swift described the training as a "rare opportunity". The three flattops are the USS Ronald Reagan, Nimitz and Theodore Roosevelt.

Other news