Broadcom offered $105 billion to acquire Qualcomm in what would be the largest tech acquisition in history, but the chipmaker thinks that the price is too low.

The takeover proposal, which carries a value of up to $130 billion once the $25 billion debt that Broadcom will also assume is factored in, will now have to undergo some changes before it pushes through.

Qualcomm Rejects Biggest Tech Acquisition Ever

Qualcomm has rejected the $105 billion takeover proposal of Broadcom. In a press release, the chipmaker said that the offer "significantly undervalues Qualcomm," as the company considers itself among the leaders in mobile technology.

In addition, Qualcomm's board of directors questioned the regulatory hurdles that Broadcom's proposed acquisition of the chipmaker will have to face.

Qualcomm already expressed its sentiments that the takeover offer was undervalued when it was made, despite the per-share price carrying a 25 percent premium. However, there were uncertainties on whether or not Qualcomm would reject the offer or rebuff it, due to its ongoing and potentially very damaging legal issues with Apple. Recent developments include allegations that Apple provided Intel with access to Qualcomm chip technology and a possibility that Apple will drop Qualcomm as a supplier for future iPhones and iPads.

Broadcom Not Backing Down

Broadcom may have been rejected, but that does not mean that it is withdrawing its plan to buy Qualcomm. In a statement, the company said that it "remains fully committed" to the acquisition.

Broadcom said that it will seek discussion with the board and management of the chipmaker, as it has received positive feedback from stockholders and customers for its planned takeover.

Analysts, meanwhile, think that Broadcom will either increase its already historic bid for Qualcomm, move to a proxy fight, or launch a hostile takeover.

Loop Capital analyst Betsy Van Hees believes that Broadcom will go with the second option, after the unsurprising rejection by Qualcomm. The simplest option, however, is for Broadcom to raise what would have already been a record-setting deal. From the initial offer of $70.00 per share, analysts think that Broadcom can easily lodge a higher bid of between $80.00 and $90.00. This will mean that the deal will be valued as high as $130 billion, and up to $155 billion after considering the debt to be paid.

There is no information on when Broadcom would make its next move. Until then, Qualcomm will be trying to settle its legal matters with Apple, as ending that will strengthen the chipmaker's position in any negotiations for a takeover, whether by Broadcom or any other buyer.

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