U.S. chipmaker Qualcomm Inc is preparing to reject rival Broadcom Ltd’s $103 billion bid as early as this week, according to sources. If it hasn’t been done so already, Qualcomm’s board of directors will meet to discuss the unwanted acquisition offer. The company is prepared to reject the offer as inadequate as early this week. Qualcomm Chief Executive Steven Mollenkopf has sought opinions from the company’s shareholders, which resulted in the conclusion that Broadcom’s $70-per-share offer undervalues the company.

Broadcom CEO Hock Tan has stated he is interested in initiating a takeover battle and that Broadcom was planning to submit a new line up of directors for Qualcomm’s Dec. 8 nomination deadline. This would make current shareholders vote to replace the board and force it to connect with Broadcom.

Broadcom has also thought about the idea of increasing its bid for Qualcomm, according to sources. Qualcomm and Broadcom did not respond to requests for comments on the possible takeover. Qualcomm supplies chips to carrier networks to deliver broadband and mobile data. The company is involved in a patent infringement dispute with Apple Inc.

It is also in the process of closing a $38 billion acquisition of automotive chipmaker NXP Semiconductors NV after signing the deal last October. Broadcom has made it clear that it is willing to acquire Qualcomm regardless of whether it closes the NXP deal or not. NXP shares have been trading above Qualcomm’s offer price, as many NXP shareholders have been holding onto their investments for a better price.

Qualcomm has no intention to drastically raise its price for NXP as a shielding strategy to bring the acquisition wanted by Broadcom to a higher value. On Friday, Qualcomm shares closed at $64.57, while Broadcom shares closed at $264.96.