Qualcomm turns down Broadcom's takeover bid; this could be the start of an epic Wall Street battle

As expected, Qualcomm this morning said no to the largest tech takeover bid in history. Fellow chipmaker Broadcom had offered $60 in cash and $10 in stock for each Qualcomm share, a transaction valued at $105 billion. Qualcomm told stockholders to reject the tender offer, stating that it amounts to Broadcom trying to buy it on the cheap. Despite the rejection, there are still ways that Broadcom can execute an end around past its target’s board.

Broadcom is said to be considering a proxy contest, asking Qualcomm stockholders to vote on replacing the latter’s current board with a slate of …


Qualcomm to reject Broadcom's unsolicited $103 billion bid?

Now that Broadcom has a $103 billion unsolicited bid on the table for fellow chip maker Qualcomm, the word from four people familiar with Qualcomm’s thinking is that the San Diego based provider of Snapdragon mobile chips is going to turn down the deal. Broadcom says that for every share of Qualcomm it receives, the latter’s stockholders will get $60 in cash and $10 in Broadcom stock.

The $70 face value of the transaction is a 28% premium from Qualcomm’s closing stock price the day before rumors about the merger first started to appear. Qualcomm’s Board of Directors is rumored to have met …