Qualcomm’s board of directors has unanimously rejected an unsolicited proposal announced by Broadcom last week. In the company’s official statement, executive chairman of Qualcomm, Paul Jacobs, said:
“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”.
Tom Horton, presiding director for Qualcomm, also commented:
“The board and management are singularly focused on driving value for Qualcomm’s shareholders. After a comprehensive review, conducted in consultation with our financial and legal advisors, the board has concluded that Broadcom’s proposal dramatically undervalues Qualcomm and comes with significant regulatory uncertainty. We are highly confident that the strategy Steve and his team are executing on provides far superior value to Qualcomm shareholders than the proposed offer”.
Analyst Comment
This bid is likely to go on and on as the companies perform a dance over valuation. We’ll keep our coverage to a minimum until the bid is on or off! (BR)
