SAN JOSE — Broadcom’s efforts to acquire Qualcomm hit a roadblock Monday as the San Diego-based communications chipmaker rejected Broadcom’s $103 billion takeover offer.
Qualcomm’s board of directors released a statement prior to Monday’s stock market open in which the company said Broadcom’s $70-a-share offer wasn’t enough. In the statement, Qualcomm Chief Executive Paul Jacobs said Broadcom’s unsolicited bid is simply not enough for Qualcomm to accept.
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“Broadcom’s proposal significantly undervalues Qualcomm relative to the company’s leadership position in mobile technology and our future growth prospects,” Jacobs said.
Broadcom made its offer for Qualcomm on Nov. 6. The deal offered Qualcomm shareholders $60 a share, plus $10 in Broadcom stock for each share of Qualcomm. With the assumption of Qualcomm’s debt, the deal would have been worth as much as $130 billion.
But Qualcomm Chief Financial Officer Steve Mollenkopf said that Qualcomm is in a competitive position where it doesn’t need to jump at an offer, even one as large as Broadcom’s.
“No company is better positioned in mobile, IoT (internet of things) automotive, edge computing and networking within the semiconductor industry,” Mollenkopf said, in Qualcomm’s statement. “We are confident in our ability to create significant additional value for our stockholders as we continue our growth in these attractive segments and lead the transition to 5G (mobile technology).”
Qualcomm said it would have no further comment on the matter. Broadcom did not immediately return a request for comment.
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Source:: The Mercury News