Broadcom today said it plans to nominate 11 board members for election to Qualcomm’s board of directors at an annual shareholders meeting in March.
This move, potentially signaling a move toward a hostile takeover, comes on the heels of Qualcomm’s board unanimously rejecting an unsolicited bid from Broadcom to buy the company for more than $100 billion.
Adding further fuel to the takeover fire, Broadcom CEO Hock Tan said he’s engaging directly with Qualcomm shareholders and customers.
“We have heard from many Qualcomm stockholders who have expressed their desire for Qualcomm to engage with us. We also continue to receive positive feedback from customers and, having had initial meetings with certain relevant antitrust authorities, remain confident that any regulatory requirements necessary to complete a combination will be met in a timely manner. Although we are taking this step, it remains our strong preference to engage in a constructive dialogue with Qualcomm. We have repeatedly attempted to engage with Qualcomm, and despite stockholder and customer support for the transaction, Qualcomm has ignored those opportunities. The nominations give Qualcomm stockholders an opportunity to voice their disappointment with Qualcomm’s directors and their refusal to engage in discussions with us. In light of the significant value our proposal provides for Qualcomm stockholders, we believe Qualcomm stockholders would be better served by new independent, highly qualified nominees who are committed to maximizing value and acting in the best interests of Qualcomm stockholders.”
Qualcomm called the move “a blatant attempt to seize control of the Qualcomm board in order to advance Broadcom’s acquisition agenda,” according to a statement.
Qualcomm Presiding Director Tom Horton said, “No company in the industry is better positioned than Qualcomm in mobile, IoT, automotive, edge computing and networking and to lead the transition to 5G. Qualcomm stockholders expect a Board that will support this innovation while evaluating objectively the full range of opportunities available to maximize value for all Qualcomm stockholders.”
