Qualcomm's San Diego HQ. Photo by Jamie Scott Lytle.

Qualcomm's San Diego HQ. Photo by Jamie Scott Lytle.

Qualcomm Inc. has rejected Broadcom Ltd.’s offer to buy the company.

Qualcomm (Nasdaq: QCOM) said early Nov. 13 that its board unanimously rejected the $70 per share offer that Broadcom (Nasdaq: AVGO) made one week ago.

“It is the board’s unanimous belief that Broadcom’s proposal significantly undervalues Qualcomm relative to the company’s leadership position in mobile technology and our future growth prospects,” Paul Jacobs, executive chairman and chairman of the board of Qualcomm Inc., said in a prepared statement.

Broadcom said it “remains fully committed to pursuing its acquisition.” The company said its offer of $70 per share — $60 in cash and $10 per share in Broadcom shares — represents a 28 percent premium on Qualcomm stock as of Nov. 2, before word of the offer leaked out.

Broadcom President and CEO Hock Tan said in a statement: “This transaction will create a strong, global company with an impressive portfolio of industry-leading technologies and products, and we have received positive feedback from key customers about this combination. We continue to believe our proposal represents the most attractive, value-enhancing alternative available to Qualcomm stockholders and we are encouraged by their reaction. Many have expressed to us their desire that Qualcomm meet with us to discuss our proposal. It remains our strong preference to engage cooperatively with Qualcomm’s board of directors and management team.”

Last week Tan told the San Diego Business Journal that recognizing Qualcomm's roots in San Diego, Broadcom would be “very focused” on the region in the event its bid for Qualcomm is a success.

Qualcomm leaders asserted the company has value as an independent entity.

“No company is better positioned in mobile, IoT [internet of things], automotive, edge computing and networking within the semiconductor industry,” CEO Steve Mollenkopf said in a statement. “We are confident in our ability to create significant additional value for our stockholders as we continue our growth in these attractive segments and lead the transition to 5G,” or fifth-generation wireless technology.

“The board and management are singularly focused on driving value for Qualcomm’s shareholders. 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. We are highly confident that the strategy Steve and his team are executing on provides far superior value to Qualcomm shareholders than the proposed offer,” said Tom Horton, presiding director for Qualcomm Inc.

Qualcomm said it would offer no other comment.