Broadcom Ltd. reacted on Tuesday to Qualcomm Inc.'s claim that its takeover offer undervalues the target company, by saying the rejection came "despite the clear customer and stockholder support." The rival chipmaker's decision means failure to tackle challenges, including disputes and several regulatory hurdles, according to the statement released by the company incorporated in Singapore. "Qualcomm's approach is a transparent attempt to sell a quick fix... and an obvious tactic to deny its own stockholders the opportunity to receive a compelling premium," Broadcom said.
The press release adds the proposed $130 billion acquisition could get clearance within 12 months. Qualcomm earlier estimated at least one and a half years would be needed for the green light from relevant regulators, with the possibility that it is actually "impossible." Its management has "repeatedly overpromised and underdelivered" since 2015, when it launched a turnaround strategy, Broadcom underscored.
Avago Technologies Ltd., incorporated in Singapore, has taken over California-based Broadcom Corp. two years ago for an equivalent of $37 billion, the biggest deal in the sector up to then, and changed its own name. The reorganized subsidiary still has offices in Irvine, while the administrative part of the whole company's headquarters is in San Jose.
