According to the company's official statement released today, Qualcomm's board of directors "unanimously rejects" the "unsolicited proposal" put on the table by Broadcom.

Semiconductor giant Qualcomm on Monday said it rejected the $130 billion unsolicited merger bid from fellow chip maker Broadcom which could represent the biggest-ever takeover in the tech sector. But because investors expect a drawn out battle, Qualcomm's stock price gained only 2% in early trading. The language, obviously, left open the door to a higher bid. Qualcomm and Broadcom would be the third largest producer of semiconductors behind Intel and Samsung. Hawk Tan, the Chief Executive at Broadcom, said in an announcement that this integral exchange will put the joined undertaking as a pioneer in the worldwide correspondence advertises with an awesome arrangement of items and advancements. READ NEXT:HP rolls out AI-powered "virtual agent" to solve customer queries Qualcomm said the proposal wouldn't deliver value for its shareholders.

That was a not-so-veiled threat to pursue a hostile takeover if necessary.

Broadcom has also been deliberating the possibility of raising its bid for Qualcomm, including through more debt financing, some of the sources said, although it was not clear when Broadcom would choose to make such a move. Tan is known as a fierce cost cutter, who buys companies and eliminates overhead and cuts back on research and development.

Qualcomm said it would have no further comment on the matter.

"Our math suggests Broadcom has a significant amount of room to play with", Bernstein analyst Stacy Rasgon wrote on Monday.

Broadcom has said its bid for Qualcomm stands, whether the NXP deal is terminated or completed at the original offer price. It's also a timely bid Qualcomm, whose earnings this year have been hurt by a global legal fight with Apple over its licensing fees for patents. This company acquired Broadcom in the year 2015. Qualcomm's profit in the fiscal year ended September 24 plummeted 57%, and its share price sank about 18% in the 12 months leading up to the bid.