UPDATED 14.13 GMT: Qualcomm dismissed Broadcom’s blockbuster $130 billion takeover bid, adding the offer “dramatically undervalues” the company.
In a statement, Qualcomm executive chairman Paul Jacobs said the board unanimously voted to reject the proposal as it “significantly undervalues Qualcomm relative to the company’s leadership position in mobile technology and our future growth prospects.”
Qualcomm presiding director Tom Horton added: “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.”
Its rejection of Broadcom’s offer comes as little surprise, as media reports over the weekend revealed Qualcomm CEO Steven Mollenkopf quizzed top investors last week and concluded the offer of $70 per share was insufficient.
In an article on the issue on Sunday, Reuters said Broadcom was assessing its next move, with speculation it could raise its offer using further debt financing.
Broadcom’s offer of $103 billion in cash and stock to shareholders, and additional costs including clearing billions in debt, took the proposed deal to $130 billion.
The figure was a record bid for a technology business and is one of the most expensive attempted takeovers of a listed company.
After rife speculation, the unsolicited offer was tabled on November 6, amid rumours Qualcomm shareholders were unlikely to accept the valuation.
The sum of $70 per Qualcomm share is a price not seen for the stock since 2015, before its well-publicised legal spat with Apple. By the end of October 2017, prior to speculation of a forthcoming bid, it was trading at $51 per share.