Qualcomm Inc. (NASDAQ:QCOM) has rejected a US$103bn takeover bid by rival chipmaker Broadcom Corporation (NASDAQ:BRCM).
Following a review, the board of Qualcomm unanimoulsy voted against the offer with presiding director Tom Horton saying it “dramatically” undervalued the US company and comes with “significant regulatory uncertainty".
Qualcomm Board Of Directors Unanimously Rejects Broadcom's Unsolicited Proposal
— LiveSquawk (@LiveSquawk) 13 November 2017
Broadcom made an unsolicited bid of US$70 per share for Qualcomm last week.
On Sunday Reuters cited sources in reporting that Qualcomm would rebuff the offer but that Broadcom has considered the possibility of raising its bid.
Qualcomm, which provides chips to carrier networks to deliver broadband and mobile data, has been trying to close its US$38bn acquisition of automotive chipmaker NXP Semiconductors after signing a deal in October 2016. Broadcom had signalled it was willing to buy Qualcomm regardless of whether it closes the NXP deal.
Shares in Qualcomm rose 1.30% to US$65.40 each in early US trading.