US semiconductor giant Qualcomm has rejected Broadcom’s latest takeover offer, saying the bid “materially undervalues” the firm.
Broadcom offered to buy its outstanding shares for $82 each, but Qualcomm’s board unanimously rejected the offer.
“Your amended offer materially undervalues Qualcomm and falls well short of the firm regulatory commitment the Board would demand given the significant downside risk of a failed transaction,” Qualcomm chair Paul Jacobs wrote in a letter to Broadcom CEO Hock Tan.
But Jacobs is still open to meeting Broadcom in an attempt to address what Qualcomm called “the serious deficiencies in value and certainty in its proposal”.
Broadcom has said the proposal represents its highest offer, but Jacobs challenged that notion in his letter. He asked: “What is the true highest price at which you would be prepared to acquire Qualcomm? Is it $82 per share or is it higher?”