At the time, Broadcom said that it was prepared to offer as much as $130 billion dollars to take control of Qualcomm.
With that amount of money, one has to imagine that Qualcomm at least considered the offer. The deal has been delayed by the Committee on Foreign Investment in the United States, which investigates proposed acquisitions of US companies by foreign buyers on national security and intellectual property grounds.More news: Kizer plays well, but Browns still lose to go 0-9
"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", executive chairman Paul Jacobs said in a release.
"Broadcom's $70 bid and Qualcomm's rejection as a positive indicator that Qualcomm's licensing business remains undervalued and both companies believe Qualcomm can resolve its licensing issues with Apple and another leading OEM", writes Walkley.
Singapore-based Broadcom made the offer last week in what would have consolidated two major players in the booming sector fueled by growth in smartphones and other connected devices. A combination with Broadcom would not have propelled it past industry leaders Intel and Samsung.More news: West Indies to Play Twenty20 Series for Next Five Years in Pakistan
In making its offer for Qualcomm, Broadcom CEO Hock Tan said the transaction "will position the combined company as a global communications leader with an impressive portfolio of technologies and products".
Broadcom has also been deliberating the possibility of raising its bid for Qualcomm, including through more debt financing, some of the sources said, although it was not clear when Broadcom would choose to make such a move.
QUALCOMM, Inc. shares fell $0.88 (-1.36%) in premarket trading Monday. It thinks it's worth more than the present offer.More news: President Duterte Claims He Stabbed Someone to Death at 16
The bid takes advantage of Qualcomm's weakened position after a year marred by conflicts with Apple Inc. over its patent royalty fees and worldwide regulators alleging anticompetitive business practices.
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