The spontaneous proposition of Broadcom added up to US$70 per share, which included US$10 in stock and US$60 in real money, or 28% more than the end cost of Qualcomm on Thursday, November 02, 2017, preceding the reports of the merger surfaced.
The bid "significantly undervalues Qualcomm relative to the company's leadership position in mobile technology and our future growth prospects", Paul Jacobs, chairman and son of Qualcomm co-founder Irwin Jacobs, said in a statement.
Steve Mollenkopf, CEO of Qualcomm believes that the chipset manufacturer holds an edge in the semiconductor industry and continues to provide value to stockholders.
"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.
Finally, it seems the board was concerned about a fight with regulators, even though Broadcom was willing to make some concessions to appease them.
Two Stabbed At Mall Of America
Potts said two adult males were taken to a hospital with non-life threatening injuries. Meanwhile, the suspect is also believed to have been wounded.
Qualcomm's Snapdragon mobile processors are widely used in the smartphones around the world.
Qualcomm's board of directors could meet as early as Sunday to review the unsolicited acquisition offer and decide on its strategy, the sources said.
Just over a week ago, we first brought you news that Broadcom was preparing an unsolicited offer to purchase Qualcomm. It is engaged in a patent infringement dispute with Apple Inc (AAPL.O), and is also trying to close its $38 billion acquisition of automotive chipmaker NXP Semiconductors NV (NXPI.O) after signing a deal in October 2016. 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.
Like Qualcomm, Broadcom is a major supplier of parts of Apple products. "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.