Qualcomm QCOM 75,71 -1,53 -1,98% has firmly rebuffed Broadcom‘s AVGO 286,73 -2,70 -0,93% bid for them. (Broadcom plans $103bn takeover of Qualcomm.) In a strongly worded press-release Qualcomm’s Board of Directors have rejected Broadcom’s unsolicited bid, and stood behind CEO Steve Mollenkopf, and his plans for the future of Qualcomm.
“The Board and Management are singularly focused on driving value for Qualcomm’s shareholders. 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. We are highly confident that the strategy Steve and his team are executing on provides far superior value to Qualcomm shareholders than the proposed offer.” – Tom Horton, Presiding Director for Qualcomm Incorporated.
“It is the Board’s unanimous belief that Broadcom’s proposal significantly undervalues Qualcomm relative to the Company’s leadership position in mobile technology and our future growth prospects.” – Paul Jacobs, Executive Chairman and Chairman of the Board of Qualcomm Incorporated.
All is not yet finished in this tussle, I imagine Broadcom’s first response is to up its offer. There are still other regulatory and legal challenges to overcome if they could agree. But it looks like Qualcomm have plans for their own growth without Broadcom. Let’s see what the shareholders have to say.
“No company is better positioned in mobile, IoT, automotive, edge computing and networking within the semiconductor industry. We are confident in our ability to create significant additional value for our stockholders as we continue our growth in these attractive segments and lead the transition to 5G.” – Steve Mollenkopf, Chief Executive Officer of Qualcomm Incorporated.