According to Bloomberg News reports, Qualcomm rejected Broadcom's $ 105 billion takeover offer, triggering the largest acquisition war in the history of technology.
Qualcomm, the San Diego-based shareholder, is rejecting the deal, calling it Broadcom an opportunistic move to buy the wireless chip maker cheaply, and Qualcomm also said it may face regulatory scrutiny to make the deal possible Eventually can not be completed.
Qualcomm declined to compel Broadcom to make a more favorable takeover bid or to launch a proxy war, but the latter is at risk of being vetoed by Qualcomm shareholders, and Broadcom today said it is still "fully committed" to continue the deal.
Qualcomm chairman and chief executive Paul Jacobs said in a statement: "The board of directors agreed that Broadcom's offer of offers, in contrast to Qualcomm's leadership in mobile technology and our future growth prospects, Seriously underestimated the value of Qualcomm.
On November 6, Broadcom chief executive Hock Tan proposed a cash and stock buyout bid of $ 70 a share for Qualcomm seeking to create a giant to lead the wireless chip market. Even before Qualcomm responded, Chen and his Consultants are ready to launch a proxy battle, go directly to seek the support of Qualcomm shareholders.
Qualcomm shares closed Thursday at $ 66.11, up 0.76% from the previous day, and Qualcomm's trading price has been below the Broadcom buy quotes since Broadcom proposed the takeover bid as investors suspect The deal can be completed Broadcom shares closed at 272.11 US dollars Thursday, up 2.45% over the previous day.
'Positive feedback'
Chen Fuyang said he has received feedback from Qualcomm shareholders and customers on his offer and is satisfied with their feedback and hopes to continue friendly negotiations with Qualcomm.
After Qualcomm was rejected, he said in a statement: 'We got positive feedback on this merger transaction from key customers and we still think our proposal is the most attractive to Qualcomm shareholders, most Valuable alternatives, we are encouraged by their feedback. '
The acquisition of Qualcomm will reshape the chip manufacturing industry and allow Broadcom to turn itself into the third-largest semiconductor maker behind Intel and Samsung Electronics Inc. The merger of Broadcom and Qualcomm will immediately be the culmination of a series of components needed to make every smartphone The default vendor with more than 1 billion smartphones a year, surpassing Dell's $ 67 billion acquisition of EMC in 2015, making it the largest acquisition in the technology industry.
StacyRasgon, an analyst at market research firm Sanford C. Bernstein, wrote in a report delivered late last week: "Qualcomm shareholders may be up for sale, but we believe Broadcom will raise its offer to 80 The dollar range may well be enough for most of them to accept. "He added that it is unlikely that Broadcom will give up its acquisition of Qualcomm, given that there is still much room to reach an agreement that Qualcomm shareholders can accept.
'Comprehensive assessment'
Chen Fuyang, through a series of transactions to create a new Broadcom, reshaping the scale of 300 billion US dollars in the semiconductor industry.He previously, he was generally able to complete the acquisition transaction in a friendly manner.In addition, Chen Fuyang is willing to continue to spend Qualcomm spent 38 billion acquisition of NXP Semiconductor trading, and the transaction is waiting for regulatory approval, which will further complicate the acquisition of Qualcomm transactions.
So far, the Qualcomm board of directors still supports the management team led by chief executive Steve Mollenkopf.
Tom Horton, the company's managing director, said in a statement: "After we conducted a thorough assessment and consulted with our finance and legal counsel, the board concluded that Broadcom's takeover offer substantially underestimated the value of Qualcomm With significant regulatory uncertainty, and we are highly confident that the strategy being implemented by Steve and his team is giving Qualcomm shareholders far more value than the takeover bid. "