Qualcomm rejects Broadcom's $100 billion-plus takeover bid

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

Broadcom execs believe that, even if Qualcomm's board doesn't like the deal, they can convince enough of the company's shareholders to take the offer and win approval from government regulators. After consulting with its financial advisors, the company concluded that Broadcom's $70-per-share proposal represents a significant undervaluation.

Qualcomm has firmly rejected Broadcom's unsolicited offer to acquire the company, deeming the $130 billion offered as a "significant undervaluation".

Qualcomm has a pending $28.1 billion deal with NXP Semiconductor that's under regulatory review in Europe.

The company's decision to decline what would be the biggest-ever tech deal simply opens the door for the inevitable proxy battle that will ultimately decide the fate of the chipmaker.

The bid "significantly undervalues Qualcomm relative to the company's leadership position in mobile technology and our future growth prospects", Paul Jacobs, chairman and son of Qualcomm co-founder Irwin Jacobs, said in a statement.

USA 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. The combined company would be third-largest chipmaker behind Intel and Samsung. Qualcomm announced today it has rejected Broadcom's takeover bid, and for now, it will remain subsidiary to no one.

European Union member states sign joint notification on deepening defense cooperation
He added that PESCO will remain open to all member states, and noted that it is important that its objectives are achievable regardless of the size of the countries involved.

Broadcom's bid may provide motivation for Qualcomm to find a resolution, said Chris Caso, an analyst with Raymond James.

NXP shares have been trading above Qualcomm's bid price, as many NXP shareholders, including hedge fund Elliott Management Corp., have been holding out for a better price.

Qualcomm CEO Steve Mollenkopf added that the U.S. chip maker has a future in mobile, the Internet of Things (IoT), edge computing and networking within the semiconductor industry, and the firm has no doubt of future growth in these areas.

On a more positive note, Canaccord Genuity's Mike Walkley, reiterating a Buy rating on Qualcomm, raises his price target to $83 from $76, writing that he thinks Broadcom will bid higher.

Shares of Qualcomm rose as much as 2.5 percent to $66.17, while those of Broadcom fell as much as 1.3 percent to $261.55.

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