Spurning what would have been the largest tech acquisition of all time, Qualcomm board says the bid undervalues the mobile phone chipmaker.
Qualcomm to Broadcom: Take your billions and go home.
The board of directors at Qualcomm, the world's largest maker of chips for phones, on Monday unanimously rejected a massive unsolicited takeover bid from Broadcom, which makes chips for everything from cable modems to set-top boxes and digital video recorders .
"Broadcom's proposal significantly undervalues Qualcomm relative to the company's leadership position in mobile technology and our future growth prospects," said Paul Jacobs, chairman of Qualcomm's board, in a statement. Qualcomm also said that the deal would come with significant regulatory uncertainty.
Broadcom said it remains fully committed to pursuing the acquisition.
"We continue to believe our proposal represents the most attractive, value-enhancing alternative available to Qualcomm stockholders and we are encouraged by their reaction," said Broadcom CEO Hock Tan in a statement. "Many have expressed to us their desire that Qualcomm meet with us to discuss our proposal."
The acquisition would have been the biggest in tech history, surpassing AOL's acquisition of Time Warner in 2001. The combined company would have been the third-largest semiconductor maker in the world, trailing only Intel and Samsung.
Update, 11:40 a.m. ET: Added statement from Broadcom.