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Qualcomm Rejects Broadcom Takeover Bid

Qualcomm Rejects Broadcom Takeover BidQualcomm Rejects Broadcom Takeover Bid

Broadcom’s multi-billion dollar bid to buy its US chipmaking rival has been rejected as “unsolicited” by Qualcomm, raising the stakes in what could be the tech industry’s biggest-ever deal, DW reported. After Broadcom announced last week it would seek to buy its competitor for $103 billion, Qualcomm said Monday that the offer was significantly undervalued and that a tie-up between the two chipmakers would face substantial regulatory resistance. Following a unanimous vote of Qualcomm’s board against the proposed takeover, the San Diego-based company said it was in a unique position to grow on its own. “We are highly confident that the strategy of Steve (Mollenkopf, chief executive) and his team are executing on provides far superior value to Qualcomm shareholders than the proposed offer,” said Qualcomm board director Tom Horton. Qualcomm, which makes the Snapdragon chips found in smartphones and tablets, is the world’s third largest chip supplier after Intel and Samsung, according to research firm Gartner. But its share price has been battered in recent months by a widening legal fight with Apple, one of its largest customers.

 

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