Qualcomm draws up plans to rebuff Broadcom's $103 billion offer

Qualcomm draws up plans to rebuff Broadcom's $103 billion offer

Reuters , citing "four people familiar with the matter", claims that Qualcomm's board of directors will review the $103 billion heavy offer, and could reply negatively straight away.

Broadcom made an unsolicited bid last week in its efforts to become the dominant supplier of chips used in the 1.5 billion or so smartphones expected to be sold around the world this year.

But as all big stories of $100 billion plus deals, Broadcom is said to be prepared to increase its bid to acquire Qualcomm according to Reuters' sources.

"It is the Board's unanimous belief that Broadcom's proposal significantly undervalues Qualcomm relative to the Company's leadership position in mobile technology and our future growth prospects", Paul Jacobs, Qualcomm's chairman of the board, said in a statement. The combined company would be third-largest chipmaker behind Intel and Samsung.

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Qualcomm's shares have been weighed down by its nasty legal battle with Apple over patent royalties, fines from antitrust regulators and slow progress on its planned $38 billion acquisition of NXP Semiconductors.

Broadcom CEO Hock Tan, who said earlier this month he would redomicile his company to the United States from Singapore, has stated he is open to launching a takeover battle. Its own board similarly thinks that the offer undervalues the company and NXPs shares were trading above Qualcomms offer.

Qualcomm shares closed at $64.57 on Friday, while Broadcom ended at $264.96.