Based Qualcomm rejecting Broadcom's purchase offer

Qualcomm will reportedly turn down Broadcom's $100 billion offer

Broadcom's response suggests "the potential of a fully-hostile bid, complete with proxy fight, could be building, with the nomination deadline for Qualcomm's board fast approaching".

Qualcomm is rejecting an unsolicited, $013 billion offer from Broadcom, saying that the proposal is significantly undervalued and that a tie-up between the massive chipmakers would face substantial regulatory resistance. Qualcomms stock closed at $64.57 a share on Friday, however the board of directors believes Broadcoms offer undervalues their company.

QUALCOMM, Inc. shares fell $0.88 (-1.36%) in premarket trading Monday.

Both companies are in the midst of other acquisitions, too. Analysts have said a deal between the two would help Qualcomm settle its legal battle with the iPhone maker as Broadcom has a closer relationship with Apple.

"Qualcomm, headquartered in San Diego, California, expressed that it would assess the proposition in an offer to seek after the technique, which is to the greatest advantage of the investors of Qualcomm".

Broadcom has also been 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. The easiest option, however, would be to talk to Qualcomm's board and agree on a higher price. The company is also known for manufacturing modems and with the globe eventually transitioning to 5G connectivity, Qualcomm is expected to play a pivotal role in ensuring that future mobile phones feature the latest hardware. "We are well-advised and know what our options are, and we have not eliminated any of those options", Broadcom Chief Executive Hock Tan told Reuters last week.

It comes as Qualcomm seeks a $47 billion acquisition of Dutch rival NXP, a deal that is the subject of an European Union anti-trust probe. "It remains our strong preference to engage cooperatively with Qualcomm's Board of Directors and management team".

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