Qualcomm to reject Broadcom's huge $103 billion takeover bid

Andrew Cummings
November 13, 2017

Last week, Broadcom made the unsolicited $103 billion offer that would have been the largest tech merger in history. The preparations for the board meeting indicate that Qualcomm is poised to rebuff the bid as insufficient as early as Monday, although it may decide to spend a few more days this week to prepare its full response to Broadcom, the sources added.

The main reason behind the rejection appears to be that, following discussions with shareholders, Qualcomm CEO Steve Mollenkopf has concluded that the $70-per-share offer is too low. Apparently, it is considering raising its bid, but also wants to submit its own selection of directors for Qualcomm's board. The Board has found that the proposal dramatically undervalues Qualcomm and comes with significant regulatory uncertainty, said Tom Horton, presiding director for Qualcomm.

Overall, Broadcom's bid is a very ambitious attempt to grow its share of the market for components that go into mobile phones.


Qualcomm provides chips to carrier networks to deliver broadband and mobile data.

Meanwhile, Qualcomm is trying to acquire NXP for $38 billion but NXPs shareholders are reluctant.

Qualcomm stock, which rallied on the report of the offer, has traded below the bid price on skepticism that a transaction can be completed.


Qualcomm recommended shareholders spurn the deal, saying it's an opportunistic move by Broadcom to buy the wireless-chip maker on the cheap.

The company's shares closed at $64.57 on Friday.


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