18:19 14 November 2017
On Monday, mobile chipmaker Qualcomm has rejected rival Broadcom’s $103-billion take over bid.
In a statement, Qualcomm's Presiding Director Tom Horton said: "The Board has concluded that Broadcom's proposal dramatically undervalues Qualcomm and comes with significant regulatory uncertainty,"
Meanwhile, Broadcom said: "We continue to believe our proposal represents the most attractive, value-enhancing alternative available to Qualcomm stockholders and we are encouraged by their reaction,"
"We are well-advised and know what our options are, and we have not eliminated any of those options," Broadcom Chief Executive Hock Tan added.
Meanwhile, Loop Capital analyst Betsy Van Hees, weighs in saying: "Qualcomm's 'thanks, but no thanks' response to the unsolicited bid by Broadcom isn't surprising and we would be surprised if, at this point, Broadcom didn't move forward with a proxy fight,"
If Broadcom makes a hostile bid, Qualcomm’s governance rules would allow the rival to submit its own slate for the entire 11-member board by the December 8 nomination deadline.
Shares of Qualcomm rose as much as 2.5per cent following the news. Broadcom’s shares, on the other hand, fell as much as 1.3per cent.
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