Revised Takeover Bid of Broadcom Rejected by Qualcomm

By Maurizio Pesce from Milan, Italia [CC BY 2.0] via Wikimedia Commons

Broadcom will ought to try again in its attempt of a take over of Qualcomm as the Snapdragon chip-maker has rejected the revised proposal of Broadcom to acquire all of its outstanding shares, saying that the 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.”

Originally, Broadcom had offered to pay $130 billion in order to acquire all of Qualcomm last November. However, the said sum was rejected by the latter, so this month, Broadcom followed up with a revised proposal that valued the shares of Qualcomm at $82 per share.

Read more: Bid for Qualcomm Increased by Broadcom to $82 Per Share

Clearly, the board of directors of Qualcomm do not think that this is enough. In its statement that is confirming the rejection of the bid, the company “offered to meet with Broadcom to see if it can address the serious deficiencies in value and certainty in its proposal.”

One the meeting does happen and both parties will be able to agree on a price, then probably, the third time may be the charm.