Qualcomm has officially rebuffed Broadcom's acquisition offer, which would mark the biggest-ever deal in the tech industry.
Broadcom and Qualcomm battled through press releases on Monday while investors tried to figure whether the two semiconductor giants would actually merge.
"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", said Paul Jacobs, executive chairman of Qualcomm.
US chipmaker Qualcomm Inc (QCOM.O) is making preparations to reject rival Broadcom Ltd's (AVGO.O) $103 billion bid as early as this week, four people familiar with the matter said on Sunday, setting the stage for one of the biggest-ever takeover battles.
Just over a week ago, we first brought you news that Broadcom was preparing an unsolicited offer to purchase Qualcomm. Tom Horton, the company's Presiding Director of Qualcomm, Inc., also said that the uncertainty of the proposed acquisition also had something to do with the rejection. They also stated that Broadcom "undervalues" them.
In turning down the bid, Qualcomm's chief executive Steve Mollenkopf said management was "confident in our ability to create significant additional value for our stockholders". Broadcom did not immediately return a request for comment. Qualcomm is already at the front of the pack when it comes to mobile chipmaking, and it stands to make a lot of money from that position as carriers begin to roll out 5G networks.
The original approach came on November 6, when Broadcom offered $70 a share for Qualcomm. Today's Broadcom is the product of a $37 billion combination in 2016 between Avago, a Singapore-based company that was once part of a former unit of pioneering PC maker Hewlett-Packard, and Broadcom, another company with origins in Southern California which made chips for tablets, smartphones and other telecom and cable applications.