Qualcomm is going to do whatever it takes to fend off Broadcom (QCOM, AVGO)

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November 6, 2017 5:56 PM

Qualcomm is reportedly set to reject Broadcom's unsolicited offer.

Last week, Broadcom offered to buy Qualcomm in a $105 billion deal that would be the largest-ever in tech.
Qualcomm said its rival's offer of $70 per share significantly undervalued the company.

The semiconductor giant Broadcom has intensified its hostile bid to buy Qualcomm.

A week ago, Broadcom said it made a $70-per-share offer to Qualcomm shareholders that consists of $60 in cash and $10 in Broadcom shares.

Then earlier on Monday, Qualcomm rejected the offer, confirming reports that said its board thought Broadcom's offer was too low. release

But Broadcom is not giving up. In a follow-up statement, CEO Hock Tan said it was his company's "strong preference" to continue to engage with Qualcomm's board and management team.

And with that response, the hostile takeover bid entered full swing.

The stakes are high. The combined company would be the world's third-largest chipmaker behind Intel and Samsung. A tie-up between the two semiconductor companies would be the largest-ever tech acquisition, surpassing the $60 billion deal between Dell and EMC in 2016. And, it would be the third-largest M&A deal on record, according to Dealogic.

There are three ways Broadcom can prevail, according to a team of Nomura analysts including Romit Shah. In a note on Friday, they said:

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