Broadcom's proposed $ 103 billion acquisition of Qualcomm does not rule out host

Broadcom (AVGO.O), maker of communications chips, sent a $ 103 billion takeover offer to smart phone chip maker Qualcomm Inc. (QCOM.O) on Monday, prompting a takeover that would reshape the industry war.

Qualcomm said it will evaluate the offer, but sources told Reuters Qualcomm tended to decline because of undervaluation and the risk that regulators will veto or delay long before it can be approved.

Hock Tan, Broadcom's chief executive, told Reuters it was not ruled out to initiate a proxy dispute to persuade shareholders to replace the board and accept the offer.

"We are well thought out and knowing which options do not preclude any choice," Tan said. "We really want to work with Qualcomm to reach a win-win agreement."

Broadcom and Qualcomm merger, will become a major supplier of smart phone chips, but also to Intel (Intel) (INTC.O) face a greater risk, the latter by supplying Apple (AAPL.O) modem chip, is from In the past based on the field of computer chips to smart phone technology expansion. Chip is the core of mobile phone hardware. Global smart phone sales this year is expected to reach about 1.5 billion.