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Qualcomm to reject Broadcom’s $103 billion offer, Reports

Qualcomm to reject Broadcom’s $103 billion offer

Few days back, there was a news that Broadcom Ltd’s has offered $103 billion to U.S. chipmaker Qualcomm Inc. But now there are reports saying that Qualcomm is about to reject the offer.

Qualcomm Chief Executive Steven Mollenkopf has spent the past few days, soliciting feedback from Qualcomm shareholders, and feels that Broadcom’s $70-per-share bid undervalues the company and does not price in the uncertainty associated with getting the deal approved by regulators, as per the report.

While on the other side, Broadcom’s CEO Hock Tan, who said earlier this month he would redomicile his company to the United States from Singapore, has stated he is open to launching a takeover battle. The sources said Broadcom was preparing to submit a slate of directors by Qualcomm’s Dec. 8 nomination deadline. That would allow Qualcomm shareholders to vote to replace the company’s board and force it to engage with Broadcom.

As per the reports, Broadcom is also deliberating the possibility of raising its bid for Qualcomm, including through more debt financing, some of the sources said, although it was not clear when Broadcom would choose to make such a move.