Tech & Science Qualcomm rejects Broadcom's $103 billion takeover bid

18:55  13 november  2017
18:55  13 november  2017 Source:   Reuters

Broadcom Plans $100 Billion Qualcomm Deal to Build Chip Colossus

  Broadcom Plans $100 Billion Qualcomm Deal to Build Chip Colossus Broadcom Ltd. Chief Executive Officer Hock Tan is contemplating an audacious $100 billion bid for Qualcomm Inc., people familiar with the matter said, using what would be the largest technology takeover to build a powerhouse that dominates the market for wireless chips. An offer of about $70 a share would include cash and stock and is likely to be made in the coming days, said the people, who asked to remain anonymous discussing a private transaction that could still not come to fruition.Buying Qualcomm would transform Broadcom into the third-largest chipmaker, behind Intel Corp. and Samsung Electronics Co.

Mobile chipmaker Qualcomm on Monday rejected rival Broadcom ’ s $ 103 billion takeover bid , saying the offer “dramatically” undervalued the U.S. company. Shares of Qualcomm were up 1% at .25 in premarket trading, while those of Broadcom fell 0.7% to 3.

Nov 13 (Reuters) - Mobile chipmaker Qualcomm Inc on Monday rejected rival Broadcom Ltd' s $ 103 - billion takeover bid , saying the offer "dramatically" undervalued the U. S . company.

LAS VEGAS, NV - JANUARY 10:  The new Lenovo television is shown during a presentation by Qualcomm at the 2012 International Consumer Electronics Show at The Venetian on January 10, 2012 in Las Vegas, Nevada. CES, the world's largest annual consumer technology trade show, runs through January 13 and is expected to feature 2,700 exhibitors showing off their latest products and services to about 140,000 attendees. © Kevork Djansezian/Getty Images LAS VEGAS, NV - JANUARY 10: The new Lenovo television is shown during a presentation by Qualcomm at the 2012 International Consumer Electronics Show at The Venetian on January 10, 2012 in Las Vegas, Nevada. CES, the world's largest annual consumer technology trade show, runs through January 13 and is expected to feature 2,700 exhibitors showing off their latest products and services to about 140,000 attendees. Mobile chipmaker Qualcomm on Monday rejected rival Broadcom's $103 billion takeover bid, saying the offer dramatically undervalued the U.S. company.

Shares of Qualcomm were up, while those of Broadcom fell.

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Mobile chipmaker Qualcomm Inc on Monday rejected rival Broadcom Ltd' s $ 103 - billion takeover bid , saying the offer "dramatically" undervalued the U. S . company. Shares of Qualcomm were up 1 percent at .25 in premarket trading, while those of Broadcom fell 0.7 percent to 3.

Mobile chipmaker Qualcomm on Monday rejected rival Broadcom ’ s $ 103 - billion takeover bid , saying the offer “dramatically” undervalued the US company. Shares of Qualcomm were up 1 percent at .25 in premarket trading, while those of Broadcom fell 0.7 percent to 3.

"After a comprehensive review, conducted in consultation with our financial and legal advisors, the Board has concluded that Broadcom's proposal dramatically undervalues Qualcomm and comes with significant regulatory uncertainty," Qualcomm's Presiding Director Tom Horton said in a statement.

Broadcom made an unsolicited bid last week in its efforts to become the dominant supplier of chips used in the 1.5 billion or so smartphones expected to be sold around the world this year.

Reuters reported on Sunday that Qualcomm would rebuff the $70 per share offer, citing people familiar with the matter.

Broadcom could not immediately be reached for comment.

The offer also comes at a time when Qualcomm is trying to close its pending $38-billion acquisition of automotive chipmaker NXP Semiconductors NV.

Broadcom has indicated it is willing to buy Qualcomm irrespective of whether it closes the NXP deal.

A sale to Broadcom would also need a nod from the antitrust officials, who are still considering Qualcomm's purchase of NXP.

Qualcomm, an early pioneer in mobile phone chips, supplies so-called modem chips to phone makers such as Apple, Samsung and LG that help the phones connect to wireless data networks.

"No company is better positioned in mobile, IoT, automotive, edge computing and networking within the semiconductor industry," Qualcomm's Chief Executive Steve Mollenkopf said.

"We are confident in our ability to create significant additional value for our stockholders."

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