Reuters – Mobile chipmaker Qualcomm has rejected rival Broadcom's $103bn takeover bid, saying the offer “dramatically” undervalued the US company.
Shares of Qualcomm were up 1% at $65.25 in pre-market trading, while those of Broadcom fell 0.7% to $263.
“After a comprehensive review, conducted in consultation with our financial and legal advisors, the board has concluded that Broadcom’s proposal dramatically undervalues Qualcomm and comes with significant regulatory uncertainty,” Qualcomm’s presiding director Tom Horton said in a statement.
Broadcom made an unsolicited bid last week in its efforts to become the dominant supplier of chips used in the 1.5 billion or so smartphones expected to be sold around the world this year.
Reuters reported on Sunday that Qualcomm would rebuff the $70 per share offer, citing people familiar with the matter.
Broadcom could not immediately be reached for comment.
The offer also comes at a time when Qualcomm is trying to close its pending $38bn acquisition of automotive chipmaker NXP Semiconductors.