Qualcomm preparing to reject Broadcom's $103 billion offerBy Robin-Leigh Chetty 13 November 2017 | Categories: news
Last week Broadcom made an offer to purchase one of its key rivals Qualcomm, in deal said to be in the region of $103 billion, making it one of the biggest acquisitions in history. As it turns out though, Qualcomm seem to have a different figure in mind, with Reuters reporting that the company will reject the initial bid sometime this week.
According to a handful of sources close to the deal, Qualcomm's CEO Steven Mollenkopf, has spent the past few days gauging the interest of the company's significant shareholders, along with consulting with experts on the finer details of the deal. To that end, it's believed that Mollenkopf is not satisfied with $70 per share deal being put on the table, deeming it undervalued.
Whether or not this will be a flat out rejection or manoeuvre to get an even larger bid from Broadcom remains to be seen, but Broadcom's CEO Hock Tan has noted that he is up for a takeover battle if necessary. As such, it seems like Broadcom has its mind made up on getting Qualcomm, with this acquisition set to be a drawn out process.
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