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Qualcomm rejects Broadcom's acquisition offer

(Image credit: Image Credit: Jejim / Shutterstock)

Qualcomm’s board of directors has unanimously rejected Broadcom’s acquisition offer, the company has revealed.

In a statement sent to media, the Qualcomm’s board of directors said that it viewed Broadcom’s offer as too low, and fell ‘well short’ of firm regulatory commitment, a necessary given there are significant downside risks of a failed transaction.

However, Qualcomm’s notice ended on a positive note, saying the company is ready to continue negotiations, to see if Broadcom can “address serious deficiencies in value and certainty”.

The statement also says that the offer “raises more questions than it answers”. In a letter to Broadcom, Qualcomm says:

“In the meeting, we would expect that you will be prepared to provide clear, specific and detailed answers to the questions below.

What is the true highest price at which you would be prepared to acquire Qualcomm?  Is it $82 per share or is it higher?  Your current proposal is inadequate as it materially undervalues Qualcomm.”

It goes on asking: “Is Broadcom willing to commit to take whatever actions are necessary to ensure the proposed transaction closes?  This is extremely important to value preservation for our shareholders.”

Image Credit: Jejim / Shutterstock 

Sead Fadilpašić
Sead Fadilpašić

Sead Fadilpašić is a freelance tech writer and journalist with more than 17 years experience writing technology-focussed news, blogs, whitepapers, reviews, and ebooks. And his work has featured in online media outlets from all over the world, including Al Jazeera Balkans (where he was a Multimedia Journalist), Crypto News, TechRadar Pro, and IT Pro Portal, where he has written news and features for over five years. Sead's experience also includes writing for inbound marketing, where he creates technology-based content for clients from London to Singapore. Sead is a HubSpot-certified content creator.