You want your intent to be as direct as possible. You are leaving, plain and simple. There's no need to mention where you're going. You can discuss that with your boss (though you're not obligated to do so) and your colleagues if you want, but there's little purpose for including that in your resignation letter. That's especially true if you're moving over to a competitor__you don't want to create ill will in this letter or cause any drama.
Acceptance With Displeasure. It's possible that your boss won't take immediate action like the reaction above__but will make it clear that he or she isn't exactly happy about your resignation. Maybe, for example, she'll mutter a curt, "Thank you for letting me know," followed by two weeks of obvious displeasure or denial that you're leaving__through gruff comments ("You know, you're really leaving us in the lurch") or a refusal to interact with you more than absolutely necessary.