Qualcomm Rejects Broadcom's Takeover Bid
By Cara Lombardo
Qualcomm Inc. said Monday its board of directors has unanimously rejected a $105 billion takeover bid from Broadcom Ltd., saying it dramatically undervalues Qualcomm and comes with significant regulatory uncertainty.
Last week, Broadcom made an unsolicited offer for Qualcomm in what would have been the largest technology takeover ever. The combination would create a massive company whose chips would manage communications for consumer devices and appliances, phone-service providers and data centers.
"It is the Board's unanimous belief that Broadcom's proposal significantly undervalues Qualcomm relative to the company's leadership position in mobile technology and our future growth prospects," Paul Jacobs, Qualcomm's executive chairman, said in prepared remarks.
Qualcomm was expected to reject the deal on the grounds that the price isn't high enough, especially given the expected regulatory scrutiny and risk that the deal would be blocked, some analysts had said.
Broadcom didn't immediately respond to a request seeking comment.
Qualcomm shares, down less than 1% this year, rose 1.2% in premarket trading.
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(END) Dow Jones Newswires
November 13, 2017 09:41 ET (14:41 GMT)Copyright (c) 2017 Dow Jones & Company, Inc.