The stock of QUALCOMM, Inc (NASDAQ:QCOM) closed at $64.57 losing 0.05% in yesterday’s trading session. This company is intends to oppose Broadcom Ltd (NASDAQ:AVGO) $103 billion bid and hopes to succeed in its quest in the course week. This was disclosed by some four people that have been following closely on the matter. It will eventually become one of the biggest-ever takeover battles ever witnessed.
Qualcomm’s board of directors has plans underway to carry out a review of the unsolicited acquisition and if all moves according to plan it could be meeting as early as Sunday to forge the way forward. It goes without saying that the company is determined to rebuff the bid as insufficient. It might take it a number of days to file a complete response to Broadcom.
Steven Mollenkopf, Qualcomm’s Chief Executive, in the past few days was busy soliciting feedback from Qualcomm shareholders. He believes that Broadcom’s $70-per-share bid in a major way undervalued the company and did not in any way price in the uncertainty that came along with the deal.
Broadcom CEO Hock Tan in the start of this month proceeded to say that he had plans underway to redomicile his company to the U.S from Singapore. In a recent statement, he outlined that he remained open to spearheading the takeover battle. Broadcom is currently making preparations to submit a slate of directors by Qualcomm’s Dec. 8 nomination deadline. That will make provide an opportunity for the shareholders of Qualcomm to move ahead and vote to replace the company’s board as well as compel it to engage with Broadcom.
The company has also been making deliberations on the possibility of raising its bid for Qualcomm, debt financing being one of them. However, it still remains unclear exactly when the company will be making its move.
The company’s spokesperson opined, “Qualcomm is engaged in a patent infringement dispute with Apple Inc (NASDAQ:AAPL), and is also trying to close its $38 billion acquisition of automotive chipmaker NXP Semiconductors NV (NXPI.O) after signing a deal in October 2016.”