Qualcomm rejects $103bn takeover bid from rival Broadcom

US 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.

"After a comprehensive review, conducted in consultation with our financial and legal advisors, the Board has concluded that Broadcom's proposal dramatically undervalues Qualcomm and comes with significant regulatory uncertainty," Qualcomm's presiding director Tom Horton said.

The unsolicited offer made by Broadcom on 6 November was part of an effort by the chip supplier to become the dominant force in the sale of the technology to the manufacturers of the estimated 1.5bn smartphones expected to be sold across the globe in the coming year.

Broadcom is also attempting to close its $38bn acquisition of automotive chipmaker NXP Semiconductors.

In turning down the bid, Qualcomm's chief executive Steve Mollenkopf said management was "confident in our ability to create significant additional value for our stockholders".

He added: "No company is better positioned in mobile, IoT, automotive, edge computing and networking within the semiconductor industry."

As of 1650 GMT, Qualcomm shares were up 1.78% to $65.72 each and Broadcom had posted a 0.24% uptick to $265.61 per share.