Qualcomm Rejects Broadcom's Buyout Offer, Says Its Undervalued – Investor's Business Daily

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Wireless-chip maker Qualcomm (QCOM) on Monday rejected an unsolicited acquisition offer by Broadcom (AVGO), saying the proposed $130 billion deal undervalues the company.

In a news release, Qualcomm said its board of directors unanimously rejected the Nov. 6 proposal and said it was not in the best interests of shareholders.

“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,” Qualcomm Chairman Paul Jacobs said in a statement.

The board also believes Broadcom’s proposal comes with “significant regulatory uncertainty,” meaning it might not pass muster with antitrust authorities.

Qualcomm Chief Executive Steve Mollenkopf said the company’s prospects remain bright.

“No company is better positioned in mobile, IoT (internet of things), automotive, edge computing and networking within the semiconductor industry,” Mollenkopf said in a prepared statement. “We are confident in our ability to create significant additional value for our stockholders as we continue our growth in these attractive segments and lead the transition to 5G (wireless technology).”

Qualcomm shares were up 1.1%, near 65.30, in morning trading on the stock market today. Broadcom was down 1%, near 262.40.

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Broadcom Offers To Buy Qualcomm For $130 Billion In Largest Tech Deal Ever

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