Qualcomm could reject Broadcom bid this week

"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 Qualcomm executive chairman and chairman of the board Paul Jacobs. Qualcomm is said to announce news of the $103 billion any minute now, but it might take a few days to trickle down to us in the real-world where $103 billion is unimaginable.

Qualcomm's board of directors could meet as early as Sunday to review the unsolicited acquisition offer and decide on its strategy, the sources said.

San Diego-based chipmaker Qualcomm is planning its negative response to rival Broadcom's offer to buy the company for $130 billion.

US chipmaker Qualcomm is preparing to fend off a bid from rival Broadcom Ltd.to take over the company for about $105 billion. The combined business would instantly become the default provider of a set of components needed to build each of the more than a billion smartphones sold every year.

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The sources asked not to be identified because the deliberations are confidential.

Shares in Qualcomm inched up one per cent on the announcement while Broadcom shares remained largely flat in pre-market trading.

Qualcomm provides chips to carrier networks to deliver broadband and mobile data. Broadcom has indicated it is willing to acquire Qualcomm irrespective of whether it closes the NXP deal.

The company's shares closed at $64.57 on Friday.

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