Qualcomm turns down $103B offer
Qualcomm rejected an unsolicited, $103 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.
Qualcomm said Monday that it’s in a unique position to grow on its own.
“We are highly confident that the strategy (CEO Steve Mollenkopf) and his team are executing on provides far superior value to Qualcomm shareholders than the proposed offer,” said Tom Horton, Qualcomm director.
Broadcom’s bid last week represented a 28 percent premium over the closing price of Qualcomm shares on Nov. 2, but analysts were expecting Qualcomm to reject the $70-per-share bid.
Broadcom said Monday that it remains committed to pursuing a deal. “We have received positive feedback from key customers about this combination,” CEO Hock Tan said in a statement. “We continue to believe our proposal represents the most attractive, value-enhancing alternative available to Qualcomm stockholders.”
San Diego-based Qualcomm, which makes the Snapdragon chips found in smartphones and tablets, is the world’s No. 3 chip supplier, according to research firm Gartner. A combination with Broadcom would not have propelled it past industry leaders.
Broadcom Ltd. also announced, in the company of President Donald Trump, that it would bring its corporate address back from Singapore to Delaware.
The company hopes the change will make it easier to get deals done and more specifically help it avoid a cumbersome federal review process for a $5.5 billion deal for U.S. network provider Brocade Communications Systems.