Qualcomm 'set to reject' Broadcom takeover offer

Mae Love
November 13, 2017

American telecommunications equipment company, Qualcomm Inc., is preparing to discard its competitor's, Broadcom Ltd., $103 billion offer as soon as this week, according to people familiar with the matter said on Sunday, paving the way to one of the biggest buyout battles.

Reuters reports Qualcomm CEO Steven Mollenkopf will consult with his board of directors and select shareholders to essentially say that the offer is too low.

The rumors of a Qualcomm takeover started a week ago with a huge $103 billion deal from Broadcom, but now Reuters is reporting that Qualcomm's board is planning to reject the offer.

Broadcom is making an unsolicited, $130 billion offer for rival chipmaker Qualcomm, the largest deal ever in the tech industry that will face intense regulatory scrutiny. The sources said Broadcom was preparing to submit a slate of directors by Qualcomm's December 8 nomination deadline.

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Broadcom has also been deliberating the possibility of raising its bid for Qualcomm, including through more debt financing, some of the sources said, although it was not clear when Broadcom would choose to make such a move.

Qualcomm provides chips to carrier networks to deliver broadband and mobile data.

Meanwhile, Qualcomm is trying to acquire NXP for $38 billion but NXPs shareholders are reluctant.

The company's shares closed at $64.57 on Friday. Its stock price has not touched $70 since 2015 - that's what Broadcom's bid works down to per share.

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