Qualcomm Rejects Broadcom's Buyout Proposal

(RTTNews) - Qualcomm Inc. (QCOM) announced that its board rejected Broadcom's buyout Proposal saying that proposal significantly undervalues Qualcomm relative to the Company's leadership position in mobile technology and future growth prospects.

"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," said Paul Jacobs, Executive Chairman and Chairman of the Board of Qualcomm.

On November 6, 2017, Broadcom Limited (AVGO) announced a proposal to acquire all of the outstanding shares of Qualcomm for per share consideration of $70.00 in cash and stock. The per share consideration would consist of $60.00 in cash and $10.00 per share in Broadcom shares. The proposed transaction is valued at approximately $130 billion on a pro forma basis, including $25 billion of net debt, giving effect to Qualcomm's pending acquisition of NXP on its currently disclosed terms.