Qualcomm Rejects Broadcom Offer
Qualcomm's board of directors have issued a statement saying that they are turning down Broadcom's $121 billion bid to buy the competing chipmaker.
Qualcomm on Thursday (Feb 8) rejected a record US$121 billion hostile bid from computer chip rival Broadcom but offered to meet with the Singapore-based firm to discuss the recently increased offer.
The California-based group said in a letter to Broadcom that the latest offer unveiled "materially undervalues Qualcomm" and does not consider the possibility of a failure to win regulatory approval.
The letter from Qualcomm chairman Paul Jacobs to Broadcom chief executive Hock Tan however opened the door to talks to discuss "the significant issues that remain unaddressed" in the hostile proposal.
The Qualcomm board "has unanimously determined that your amended offer materially undervalues Qualcomm and falls well short of the firm regulatory commitment the board would demand given the significant downside risk of a failed transaction," Jacobs said in his letter.
"However, the board is committed to exploring all options for maximising shareholder value, and so we would be prepared to meet with you to allow you to explain how you would attempt to bridge these gaps."
The move comes days after Broadcom boosted its offer to US$82 a share to create a global giant in the chip manufacturing sector, a deal worth some US$146 billion including assumed debt.