Qualcomm’s board of directors unanimously rejected an acquisition proposal from Broadcom, the company announced on Thursday.
Broadcom had proposed acquiring all outstanding shares of Qualcomm for $82 per share, which breaks down to $60.00 in cash and $22 in Broadcom stock. Broadcom previously described the $121 billion as its “best and final offer.”
In a letter from Qualcomm chairman Paul Jacobs to Broadcom CEO Hock Tan, the board detailed their decision.
“The Board has unanimously determined that your amended offer materially undervalues Qualcomm and falls well short of the firm regulatory commitment the Board would demand given the significant downside risk of a failed transaction,” Jacobs wrote in the letter.
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