Broadcom and Qualcomm battled through press releases on Monday while investors tried to figure whether the two semiconductor giants would actually merge.
Qualcomm's board believes that Broadcom's proposal significantly undervalues Qualcomm given its leadership position in mobile technology and their future growth opportunity. Broadcom said it would seek to engage with Qualcomm's board and management, adding that it had received positive feedback from key customers and stockholders.
FILE PHOTO: A sign on the Qualcomm campus is seen, as chip maker Broadcom Ltd announced an unsolicited bid to buy peer Qualcomm Inc for $103 billion, in San Diego, California, U.S. November 6, 2017.
In addition, according to Presiding Director of Qualcomm Tom Horton, there was also "significant regulatory uncertainty" which put Qualcomm on edge - which could have led to outright regulatory rejection, complicated discussions, and a long road to meet legal requirements and maintain value.
U.S. semiconductor and telecommunications firm Qualcomm rejected a $103bn takeover bid from competitor Broadcom on Monday, saying the offer "dramatically" underestimated the value of the company.More news: Manus Island activists locked to gates of Australian high commission in Wellington
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"We continue to believe our proposal represents the most attractive, value-enhancing alternative available to Qualcomm stockholders", Broadcom president and CEO Hock Tan in a statement.
Qualcomm said Monday that it's in a unique position to grow on its own.
Both semiconductor companies did not immediately respond to requests for comment.
It comes as Qualcomm seeks a $47 billion acquisition of Dutch rival NXP, a deal that is the subject of an European Union anti-trust probe.
Finally, it seems the board was concerned about a fight with regulators, even though Broadcom was willing to make some concessions to appease them. Amid all the fighting with Apple, and accompanying loss of revenue, Qualcomm's shares had fallen 20% this year through late October to $51 before rumors of Broadcom's interest leaked.