US chipmaker Qualcomm Inc (QCOM.O) is making preparations to reject rival Broadcom Ltd's (AVGO.O) $103 billion bid as early as this week, four people familiar with the matter said on Sunday, setting the stage for one of the biggest-ever takeover battles. And that doesn't take into account ending Qualcomm's royalty rate feuds with Apple (aapl) and another unidentified phonemaker that are costing the company another $3 billion a year or more.
The company's decision to decline what would be the biggest-ever tech deal simply opens the door for the inevitable proxy battle that will ultimately decide the fate of the chipmaker.
"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".
Broadcom's response suggests "the potential of a fully-hostile bid, complete with proxy fight, could be building, with the nomination deadline for Qualcomm's board fast approaching".
Duncan woman sentenced for incest in marriage to biological mother
Investigators told News 4 that 43-year-old Patricia Spann lost custody of Misty, 26, and two other children when they were young. Patricia Spann said she didn't think they violated any laws because her name was no longer on Misty Spann's birth certificate.
Disneyland Is Source Of Legionnaire's Disease Outbreak
Disneyland has shut down two cooling towers after people who visited the Anaheim theme park came down with Legionnaires' disease. The towers were chemically treated to combat the problem, and there is no ongoing threat to guests' health, the Register reports.
SBI standalone profit falls 37.7%
Gross bad loans as a percentage of total loans stood at 9.83 percent at end-September compared with 9.97 percent at end-June. Retail advances grew by just over 13 per cent from Rs 4.47 lakh crore to Rs 5.05 lakh crore as of September 2017.
Keep in mind, this offer from Broadcom wasn't solicited, so it isn't as if Qualcomm and Broadcom were in talks about a merger before Broadcom plopped its $130 billion bid on the table.
This could lead to a higher bid from Broadcom in the future, but there's no word on when Broadcom might make another offer. Amid all the fighting with Apple, and accompanying loss of revenue, Qualcomm's shares had fallen 20% this year through late October to $51 before rumors of Broadcom's interest leaked.
Shares of Qualcomm rose as much as 2.5 percent to $66.17, while those of Broadcom fell as much as 1.3 percent to $261.55.
At the time of writing, Qualcomm shares are priced at $65.50 pre-market.
"No company is better positioned in mobile, IoT (internet of things) automotive, edge computing and networking within the semiconductor industry", Mollenkopf said, in Qualcomm's statement. They have forced Qualcomm to offer concessions, and may demand more.