Qualcomm rejects Broadcom takeover bid

Qualcomm has rejected a takeover offer from Broadcom.

Broadcom (AVGO), a semiconductor company, offered $105 million in cash and stock to acquire the smartphone chip maker. But  Qualcomm (QCOM), whose board unanimously rejected the unsolicited bid, argued that the deal vastly undervalued the company and would face substantial regulatory resistance.

Qualcomm said Monday that it's in a unique position to grow on its own.

"No company is better positioned in mobile, IoT, automotive, edge computing and networking within the semiconductor industry," said Steve Mollenkopf, Qualcomm's CEO, in a prepared statement. "We are confident in our ability to create significant additional value for our stockholders as we continue our growth in these attractive segments and lead the transition to 5G."

Broadcom's proposal last week represented a 28 percent premium over the closing price of Qualcomm shares on Nov. 2, but analysts were expecting Qualcomm the reject the $70-per-share bid. The rejection was not unexpected.

Qualcomm, which makes the Snapdragon chips found in smartphones and tablets, is the world's No. 3 chip supplier, according to research firm Gartner, trailing Intel and Samsung. A combination with Broadcom would not change that.

The deal would have been the largest ever takeover in the tech industry.