Shortly after Qualcomm issued its statement on Monday turning down the $70-per-share bid, Broadcomm fired back nearly immediately with an announcement of its own maintaining that its offer was the best the embattled Qualcomm could hope to get.
Broadcom itself has yet to close its $5.5bn acquisition of Brocade which was announced in November a year ago, while Qualcomm is still wrangled in regulatory processes following its $38bn deal for Dutch semiconductor NXP.
It was also said the offer does not price in the "uncertainty associated with getting the deal approved by regulators".
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.
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.More news: United States air traffic controller charged with possessing pipe bomb
The original approach came on November 6, when Broadcom offered $70 a share for Qualcomm.
Due to several reasons, Qualcomm has rejected Broadcom's $130 billion offer and will continue to operate as a separate entity for now. Broadcom has told analysts and investors it could chop $3 billion from Qualcomm's expenses, boosting operating profit by about 30%. The combined company would be third-largest chipmaker behind Intel and Samsung.
Qualcomm has been facing a series of investigations around the world linked to its dominance in the smartphone chip segment. Today's Broadcom is the product of a $37 billion combination in 2016 between Avago, a Singapore-based company that was once part of a former unit of pioneering PC maker Hewlett-Packard, and Broadcom, another company with origins in Southern California which made chips for tablets, smartphones and other telecom and cable applications.
"No company is better positioned in mobile, IoT (internet of things) automotive, edge computing and networking within the semiconductor industry", Mollenkopf said, in Qualcomm's statement. The deal has been delayed by the Committee on Foreign Investment in the United States, which investigates proposed acquisitions of USA companies by foreign buyers on national security and intellectual property grounds.
Broadcom has said its bid for Qualcomm stands, whether the NXP deal is terminated or completed at the original offer price.