"We are highly confident that the strategy Steve and his team are executing on provides far superior value to Qualcomm shareholders than the proposed offer", said Tom Horton, Presiding Director for Qualcomm Incorporated. In the statement, Qualcomm Chief Executive Paul Jacobs said Broadcom's unsolicited bid is simply not enough for Qualcomm to accept. "Qualcomm's "thanks, but no thanks" response to the unsolicited bid by Broadcom isn't surprising and we would be surprised if at this point, Broadcom didn't move forward with a proxy fight", Loop Capital analyst Betsy Van Hees told Reuters.
Broadcom Ltd., also announced, in the company of President Donald Trump, that it would bring its corporate address back from Singapore, to Delaware. It was also exploring the possibility of putting the decision in the shareholders' hands by nominating individuals to Qualcomm's board who would engage with negotiation talks.
On a more positive note, Canaccord Genuity's Mike Walkley, reiterating a Buy rating on Qualcomm, raises his price target to $83 from $76, writing that he thinks Broadcom will bid higher. Analysts have said a deal between the two would help Qualcomm settle its legal battle with the iPhone maker as Broadcom has a closer relationship with Apple.More news: Stanford knocks No. 9 Washington out of playoff conversations
The sources asked not to be identified because the deliberations are confidential. Broadcom did not immediately return a request for comment. If Qualcomm had approved the deal, the combined company would have created major changes in the chipmaking industry.
Qualcomm has been facing a series of investigations around the world linked to its dominance in the smartphone chip segment. 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. Broadcom's (avgo) shares, up nearly 50% so far this year, were largely unchanged on Monday at $264.28.
As of 1650 GMT, Qualcomm shares were up 1.78% to $65.72 each and Broadcom had posted a 0.24% uptick to $265.61 per share.