Broadcom recently made an unsolicited, $103 billion offer for rival chipmaker Qualcomm, the tech industry's largest attempted takeover that is destined to come under intense regulatory scrutiny.
On Monday, Qualcomm rejected the offer.
The San Diego-based company said the offer "dramatically" undervalues the company, according to a report from CNBC.
"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 in a statement.
Read the entire statement here.
The Broadcom offer of $70 per share to Qualcomm stockholders would be $60 per share in cash and $10 per share of Broadcom. Broadcom says its proposal is a 28 percent premium over the closing price of Qualcomm common stock on November 2, the last "unaffected" trading day for the companies.
It has also offered to pick up $25 billion in debt.
Broadcom Ltd., which manufactures communications chips around the world, said last week it would relocate its legal address to Delaware once shareholders approve the move, bringing $20 billion in annual revenue back to the U.S. Its most recently reported annual revenue was $13.2 billion worldwide.
The week before the offer, Qualcomm reported revenue of $22.3 billion for fiscal 2017.