Qualcomm Rejects $130 Billion Broadcom Merger Proposal

QUALCOMM, Inc. QCOM announced Monday that its board of directors unanimously rejected Broadcom Ltd AVGO’s unsolicited acquisition offer.

"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 executive chairman Paul Jacobs said in a press release.

Broadcom had offered $70 per outstanding share for a total value of $130 billion.

Presiding Director Tom Horton also cited “significant regulatory uncertainty” around the proposed deal. Speculation of antitrust scrutiny had prompted sell-offs in both stocks last Thursday.

Qualcomm management intends to remain on its current course and, by its assessment, secure superior shareholder value as an independent operation.

“No company is better positioned in mobile, IoT, automotive, edge computing and networking within the semiconductor industry,” CEO Steve Mollenkopf said in a press release. “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.”

Qualcomm was rumored to have also fielded interest from Intel Corporation INTC, although details of that potential deal have not yet emerged.

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