Qualcomm rejects Broadcom’s takeover bid:Report
Week after the news Broadcom planning to buy Qualcomm for $100 billion a recent update has came related to the deal. On Monday Mobile chip maker Qualcomm Inc rejects the offer of take over of the only next competitor Broadcom Ltd’s $104-billion takeover bid. Stating that the offer made by Broadcom is under value and will face regulatory hurdles.
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We are seeking to engage with management and Qualcomm’s board, after it had received positive feedbacks from key customers and stockholders said Broadcom.
Broadcom believe that the proposal represents the fair attractive price per value and value-enhancing options for Qualcomm’s stockholders and they are encouraged by their reactions.
For the update, Broadcom had bid last week to buy Qualcomm in an effort to become the dominant supplier of chips widely used in 1.6 billion+ Smart phones anticipated to be sold, this year around the globe. Apple is counted to be the top customer among all, for both the companies. Experts say that the deal will help Qualcomm to settle its legal battle with the iPhone maker, as Broadcom is said to be have a closer relations with Apple.
“Qualcomm’s ‘thanks , but not interested‘ response to the unwelcome bid offer from Broadcom is not surprising rather if Broadcom didn’t move forward with a proxy fight, at this point, we would be surprised“- Capital analyst expert say.
For the entire 11 members board, if the hostile bid is made by Broadcom, the Qualcomm’s governance rules would allow the rival to submit its own slate.
However the easiest option is to talk to board of Qualcomm’s and agree at the higher price.As per experts-The right price for Qualcomm is expected to lay between $70 and $95 per share, and Broadcom could go up to $90.
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