Qualcomm rejects Broadcom's unsolicited proposal

Largest ever tech takeover 'significantly undervalues' chipmaker

Qualcomm is rejecting an unsolicited, $013 billion offer from Broadcom, saying that the proposal is significantly undervalued and that a tie-up between the massive chipmakers would face substantial regulatory resistance.

"No company is better positioned in mobile, IoT, automotive, edge computing and networking within the semiconductor industry. 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", said Mollenkopf.

Qualcomm has moved quickly to rejected rival Broadcom's $130bn takeover bid, claiming that it "dramatically undervalues" the company, but hinted that a significantly raised offer might be accepted.

And CEO Steve Mollenkopf said that Qualcomm well positioned for continual growth.

Although Qualcomm isn't as large as Samsung or Intel as it stands, the purchase of the firm by chip maker Broadcom could change this, completely shaking up the tech industry.

The San Diego-based chipmaker announced on Monday that it was passing on the acquisition, which Broadcom actually valued at $130 billion taking Qualcomm's $25 billion debt into account. But whether Broadcom is willing to make an offer Qualcomm can't refuse still isn't clear.

The deal would dwarf Dell Inc's US$67 billion acquisition of EMC in 2015 - then the biggest in the technology industry. That being said, all of this could be decided as early as next week, with Qualcomm's board of directors reportedly planning on meeting on Sunday to review the offer and come up with a strategy.

The combined business would instantly become the default provider of a set of components needed to build each of the more than 1 billion smartphones sold every year.

Broadcom restated its intention to get Qualcomm to come to terms, noting that its previous offer-which consisted of $60 in cash and $10 in Broadcom stock per share-marked a 28% premium over the closing price of Qualcomm's shares on November 2, the last day to have been unaffected by media speculation of a deal.

"We have received positive feedback from key customers about this combination", he said in a statement following Qualcomm's rejection.

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