Qualcomm rejects Broadcom takeover bid

Reuters

Computer chipmaker Qualcomm has rejected a $103bn (£79bn) takeover offer from rival Broadcom.

Qualcomm said that the offer, the rating of potentially the largest tech-sector to the takeover date, “dramatic” of the company.

He added that the proposal also came with a “significant regulatory uncertainty”.

Broadcom, which makes chips for products such as smartphones, the $70 per share from Qualcomm.

The offer comes at a time of consolidation within the industry. Broadcom waits a Brocade to buy on approval, while Qualcomm is to purchase in talks to NXP Semiconductors.

Meanwhile, Qualcomm is currently a dispute over the license employed in a legal fees, with its largest customer, Apple.

A tie-up between Broadcom and Qualcomm, the world’s third-largest chipmaker behind Intel and Samsung would create.

The reaction to the news, Hock Tan, president and chief executive of Broadcom, said: “We continue to believe that our proposal represents the attractive, value-enhancing alternative available to Qualcomm shareholders and we are encouraged by your response.

“Many have expressed to us their desire, that Qualcomm will meet with us to discuss our proposal.”