Qualcomm 'set to reject' Broadcom takeover offer

Steven Mollenkopf CEO of Qualcomm

But Qualcomm's beaten down stock price showed far less optimism among investors that a deal could be consummated quickly.

Broadcom's efforts to acquire Qualcomm hit a roadblock Monday as the San Diego-based communications chipmaker rejected Broadcom's $103 billion takeover offer.

Qualcomm shares rose 0.8 percent, to $65.11, while Broadcom was off by 1 percent, at $262.24 a share, after the rejection announcement. According to the company's official statement released today, Qualcomm's board of directors "unanimously rejects" the "unsolicited proposal" put on the table by Broadcom.

Paul Jacobs, Executive Chairman and Chairman of the Board of Qualcomm Inc. said this about the potential acquisition.

Broadcom, meanwhile, is seeking to buy United States rival Brocade Communications in a deal being reviewed by Washington.

Reuters, citing sources, reported Qualcomm's CEO felt the Broadcom unsolicited takeover offer "undervalues the company and does not price in the uncertainty associated with getting the deal approved by regulators".

In an email, a Qualcomm spokesperson said the company "won't have any comment beyond this statement".

Qualcomm CEO Steve Mollenkopf added that the USA chip maker has a future in mobile, the Internet of Things (IoT), edge computing and networking within the semiconductor industry, and the firm has no doubt of future growth in these areas.

Broadcom Ltd., also announced, in the company of President Donald Trump, that it would bring its corporate address back from Singapore, to Delaware.

As such, Qualcomm expects to generate "significant additional value" for shareholders in the future, especially with the prospect of 5G networking on the horizon.

Qualcomm provides chips to carrier networks to deliver broadband and mobile data.

Overall, Broadcom's bid is a very ambitious attempt to grow its share of the market for components that go into mobile phones. That's no small amount of money, and it would have ranked as the tech industry's largest acquisition ever.

On Friday, Qualcomm shares concluded at $64.57, while Broadcom finished at $264.96.