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.”
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