Semiconductor giant Qualcomm on Monday said it rejected the $130 billion unsolicited merger bid from fellow chip maker Broadcom which could represent the biggest-ever takeover in the tech sector. Singapore-based Broadcom made the offer last week in a deal that would consolidate two major players in the booming sector fueled by growth in smartphones and other connected devices.
The proposal "significantly undervalues Qualcomm relative to the company's leadership position in mobile technology and our future growth prospects," said Paul Jacobs, Qualcomm's executive chairman, in a statement. Steve Mollenkopf, Qualcomm's chief executive, said the California company remains confident about its future. "No company is better positioned in mobile, IoT (internet of things), automotive, edge computing and networking within the semiconductor industry," he said.