Qualcomm rejects Broadcom’s unsolicited proposal
Proposal is not in the best interests of shareholders and dramatically undervalues Qualcomm: firm says
Qualcomm Inc. announced that its board of directors unanimously rejected the unsolicited proposal announced by Broadcom Ltd. on November 6, 2017.
“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,” says Paul Jacobs, executive chairman and chairman of the board of Qualcomm.
“No company is better positioned in mobile, IoT, automotive, edge computing and networking within the semiconductor industry. We are confident in our ability to create significant additional value for our stockholders as we continue our growth in these attractive segments and lead the transition to 5G,” adds Steve Mollenkopf, chief executive officer Qualcomm.
“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,” said Tom Horton, presiding director for Qualcomm.