Broadcom dispatches US$130 bn offer for Qualcomm

Steven Mollenkopf CEO of Qualcomm

Broadcom doesnt care about the outcome of that deal – it has stated that it wants to acquire Qualcomm with or without NXP.

Qualcomm is set to reject the multi-billion takeover bid from fellow chipmaker Broadcom, reports have claimed. "Qualcomm's "thanks, but no thanks" response to the unsolicited bid by Broadcom isn't surprising and we would be surprised if at this point, Broadcom didn't move forward with a proxy fight", Loop Capital analyst Betsy Van Hees told Reuters.

"It is the board's unanimous belief that Broadcom's proposal significantly undervalues Qualcomm relative to the company's leadership position in mobile technology and our future growth prospects", Paul Jacobs, Qualcomm's chairman of the board, said in a statement.

After getting an on-the-record rejection of its buyout bid for Qualcomm (NASDAQ:QCOM), Broadcom (NASDAQ:AVGO) says it's still "fully committed" to the deal.

Qualcomm has a message for its prospective buyer: Sorry, but we're worth more than you think.

Shortly after Qualcomm issued its statement on Monday turning down the $70-per-share bid, Broadcomm fired back nearly immediately with an announcement of its own maintaining that its offer was the best the embattled Qualcomm could hope to get.

Qualcomm also said the offer poses "significant regulatory uncertainty" for the firm, adding that strategy being executed by Mollenkopf is "far superior" in value to its stockholders than the proposed offer.

On the other hand, Hock Tan, Broadcom CEO who said earlier this month he would revive his company's presence in the United States from Singapore, said he is open to initiating a takeover battle. At the time, Broadcom said that it was prepared to offer as much as $130 billion dollars to take control of Qualcomm. If Qualcomm had approved the deal, the combined company would have created major changes in the chipmaking industry.

Qualcomm provides chips to carrier networks to deliver broadband and mobile data. Under Broadcom's proposal, Qualcomm stockholders would receive per share and it will consist of $60.00 in cash and $10.00 per share in Broadcom shares.

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