Broadcom Still ‘Fully Committed’ to Buying Qualcomm After Qualcomm Board's Rejection
Broadcom remains “fully committed” to buying Qualcomm for $70 a share, said Broadcom in a Monday statement, after Qualcomm’s announcement earlier in the day that its board unanimously rejected the Nov. 6 “unsolicited” offer (see 1711060004). Broadcom is “encouraged” with…
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the reaction of Qualcomm shareholders that the offer is “the most attractive, value-enhancing alternative available” to them, said CEO Hock Tan. Many Qualcomm shareholders “have expressed to us their desire that Qualcomm meet with us to discuss our proposal,” said Tan. It remains Broadcom’s “strong preference to engage cooperatively” with Qualcomm's board and management team, he said. It’s Qualcomm board’s “unanimous belief” that Broadcom’s offer “significantly undervalues Qualcomm” relative to its “leadership position in mobile technology and our future growth prospects,” said Chairman Paul Jacobs. No company is “better positioned” in mobile, IoT, automotive, edge computing and "networking within the semiconductor industry,” added CEO Steve Mollenkopf. “We are confident in our ability to create significant additional value for our stockholders as we continue our growth in these attractive segments and lead the transition to 5G.”