Skip to content

November 13, 2017

Qualcomm plans to reject Broadcom’s takeover bid

by John_A

Broadcom might have to forget about taking over Qualcomm without a fight — Reuters sources claim that Qualcomm’s board is planning to reject the unsolicited buyout bid. Reportedly, Broadcom’s offer of $70 per share, despite setting a record, “undervalues” Qualcomm and doesn’t account for the potential regulatory hurdles involved in clinching such a huge deal. The chip giant could voice its objections as early as November 13th, the tipsters said, but might take a few days to ready a fuller response.

Meanwhile, Broadcom appears ready to handle this kind of resistance. It’s considering raising its bid, Reuters’ sources said, and it’s hoping to submit its own selection of directors for Qualcomm’s board. If shareholders want a deal, they could vote for new board members and force the company to come to the negotiating table.

Neither company has commented on the report, but it wouldn’t be shocking if Qualcomm held out. It knows that it has plenty of bargaining chips — its Snapdragon processors are virtually ubiquitous in the smartphone world, and it has lots of clout in wireless infrastructure as well. Qualcomm may not completely object to the idea of a sale, but it knows it can at least try for a better deal before losing its independence.

Source: Reuters

Read more from News

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

Note: HTML is allowed. Your email address will never be published.

Subscribe to comments

%d bloggers like this: