Qualcomm 'set to reject' Broadcom takeover offer

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Shortly after Qualcomm issued its statement on Monday turning down the $70-per-share bid, Broadcomm fired back nearly immediately with an announcement of its own maintaining that its offer was the best the embattled Qualcomm could hope to get.

Despite that, it seems that Broadcom's offer wasn't enough for Qualcomm's board of directors.

After getting an on-the-record rejection of its buyout bid for Qualcomm (NASDAQ:QCOM), Broadcom (NASDAQ:AVGO) says it's still "fully committed" to the deal.

He added: "No company is better positioned in mobile, IoT, automotive, edge computing and networking within the semiconductor industry".

This comes shortly after Qualcomm filed another lawsuit against its main chip purchaser, Apple, claiming that it broke a confidentiality clause found in its contract.

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The company's shares closed at $64.57 on Friday.

Qualcomm, which makes the Snapdragon chips found in smartphones and tablets, is the world's No. 3 chip supplier, according to research firm Gartner. The sources said Broadcom was preparing to submit a slate of directors by Qualcomm's December 8 nomination deadline.

"We are highly confident that the strategy (CEO Steve Mollenkopf) and his team are executing on provides far superior value to Qualcomm shareholders than the proposed offer", said Tom Horton, Qualcomm director. They also stated that Broadcom "undervalues" them.

Broadcom has shown its willingness to buy Qualcomm regardless of whether it closes the NXP deal. Now we'll have to see if Broadcom returns with a bigger offer (though its initial proposal represented a 28% premium over Qualcomm's share price before Broadcom's plans were reported in the press) or simply gives up. "We are well-advised and know what our options are, and we have not eliminated any of those options", Broadcom Chief Executive Hock Tan told Reuters last week. The deal has been delayed by the Committee on Foreign Investment in the United States, which investigates proposed acquisitions of USA companies by foreign buyers on national security and intellectual property grounds.

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