Qualcomm rejects Broadcom's initial takeover offer

Updated 2017-11-14 18:17:36 Xinhua

Qualcomm announced Monday that it has rejected rival chipmaker Broadcom's acquisition offer of 70 U.S. dollars per share, saying the bid price was too undervalued to be accepted.

Qualcomm is a California-based multinational leading semiconductor and telecommunications equipment producer. Last year, its revenue reached 23.55 billion dollars.

"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, Qualcomm's executive chairman and chairman of the board, said in an official statement released Monday.

The statement also cited Qualcomm CEO Steve Mollenkopf as saying that no company has better position than Qualcomm in mobile, IoT (Internet of Things), automotive, edge computing and networking within the semiconductor industry, so the company has confidence to continue growth in these segments and lead the transition to 5G.

Broadcom, a California-based semiconductor device supplier, gave Qualcomm the offer last week. Based on the price consisting of 60 dollars in cash and 10 dollars per share in Broadcom shares, the purchase was estimated worth 130 billion dollars.

As a response, Broadcom issued a statement Monday, saying it remains fully committed to pursuing its acquisition of Qualcomm.

The company said its offer of 70 dollars per share represents a 28 percent premium over the closing price of Qualcomm's common stock on Nov. 2, 2017, the last unaffected trading day prior to media speculation regarding a potential transaction, and a premium of 33 percent to Qualcomm's unaffected 30-day volume-weighted average price.

Local media said Qualcomm's rejection could lead to a higher bid from Broadcom in the future, but there's no word on when Broadcom might make another offer.

Also in the News

Nicole Kidman Recalls Oscar Glory: Loneliest Time
Showbiz2016/06/16 13:58January 18 2019 23:24:07

Nicole Kidman Recalls Oscar Glory: Loneliest Time

Attending Shanghai International Film Festival, Nicole Kidman talks about her role in "Grace of Monaco".

Labor Day Travel Peak Starts
Also in the News2014/05/01 12:16January 18 2019 23:24:07

Labor Day Travel Peak Starts

Johnny Depp Delivers a Speech 'Evolve the Future' in 'Transcendence'
Also in the News2014/04/18 13:18January 18 2019 23:24:07

Johnny Depp Delivers a Speech 'Evolve the Future' in 'Transcendence'

Hollywood star Johnny Depp's speech in the upcoming new film "Transcendence" has been disclosed on Friday, April 11th.

China World Business Sports Showbiz Audio
C4 My Chinese Life The Sound Stage China Revealed Showbiz Video Travel Video
China World Fun Travel Entertainment Sports
Beijing Shanghai Guangzhou
Live Music Opera & Classical Movies Traditional Shows Exhibitions
Learn Chinese:
Chinese Studio Living Chinese Everyday Chinese Just For Fun Chinese Culture Buzzwords