Mobile chipmaker Qualcomm on Monday rejected rival Broadcom's $103 billion takeover bid, saying the offer "dramatically" undervalued the US company.
Shares of Qualcomm were up 1 per cent at $65.25 in premarket trading, while those of Broadcom fell 0.7 per cent to $263.
"After a comprehensive review, conducted in consultation with our financial and legal advisers, the board has concluded that Broadcom's proposal dramatically undervalues Qualcomm and comes with significant regulatory uncertainty," Qualcomm presiding director Tom Horton said in a statement.
Broadcom made an unsolicited bid last week in its efforts to become the dominant supplier of chips used in the 1.5 billion or so smartphones expected to be sold around the world this year.
It was reported on Sunday that Qualcomm would rebuff the $70 per share offer, citing people familiar with the matter. Broadcom could not immediately be reached for comment.
