Qualcomm officially rejected Broadcom's acquisition: $13 billion, which underestimated us.
It is reported that on the evening of November 6th, Broadcom, an American communication chip manufacturer, announced through its official website that it would spend $13 billion to acquire Qualcomm. If this transaction is successful, it will become the largest M&A transaction in the history of the semiconductor industry. On November 7, Qualcomm responded that it would conduct an evaluation. Yesterday, Qualcomm formally rejected Broadcom's acquisition. Let's look at the details.
Qualcomm rejects Broadcom's acquisition
On November 12th, Qualcomm announced that its board of directors rejected Broadcom's offer of $13 billion on November 6th. Qualcomm's executive chairman, CEO and presiding director expressed the opinions of the company's board of directors respectively.
PaulJacobs, executive chairman of Qualcomm, said: "The board of directors of the company agreed that Broadcom's offer underestimated the value of Qualcomm."
SteveMollenkopf, CEO of Qualcomm, said, "Qualcomm has advantages over any other enterprise in the fields of mobile, internet, automobile, Edgecomputing and networking. We believe that we can create more additional value for shareholders. "
Qualcomm
TomHorton, PresidingDirector of Qualcomm, said: "The company's board of directors and management are focused on creating value for the company's shareholders. With the help of financial and legal consultants, after comprehensive evaluation, the board of directors agreed that Broadcom's offer seriously underestimated the value of Qualcomm. "
this means that the two-way merger will not happen. Earlier, people familiar with the matter predicted that Qualcomm would reject Broadcom from two aspects: low quotation and government anti-monopoly. Sure enough.
Broadcom
However, Broadcom still refuses to give up. The CEO of Broadcom said, "We still believe that our proposal is the most attractive and value-enhancing option that Qualcomm shareholders can see, and we are encouraged by their response.
He also said, "Many people have told us that they would like to see Qualcomm sit down and discuss our proposal with us. We are still very inclined to actively interact with Qualcomm's board of directors and management. "
It can be seen that what will happen between Broadcom and Qualcomm is not over yet.