Broadcom Proposes to Oust Qualcomm's Board
Broadcom today suggested Qualcomm's shareholders elect an entirely new board of directors during the latter's planned annual shareholder meeting on March 6, 2018. Broadcom took the opportunity to nominate 11 people to replace Qualcomm's board. The idea is to facilitate a sale or merger between the two entities. In November, Broadcom offered to buy Qualcomm for about $105 billion. Qualcomm's board later declined. Broadcom insists that its initial proposal received positive attention and the company continues to believe bringing the two together would benefit shareholders and customers. "We have repeatedly attempted to engage with Qualcomm, and despite stockholder and customer support for the transaction, Qualcomm has ignored those opportunities," said Hock Tan, President and Chief Executive Officer of Broadcom. "The nominations give Qualcomm stockholders an opportunity to voice their disappointment with Qualcomm's directors and their refusal to engage in discussions with us." Qualcomm shot back, "Qualcomm believes that this action is a blatant attempt to seize control of the Qualcomm Board in order to advance Broadcom’s acquisition agenda." Qualcomm insists Broadcom does not have Qualcomm's shareholders in its best interests. Qualcomm also suggested Broadcom doesn't have the financing and the details regarding its planned redomiciling from Singapore to the U.S. are murky at best. "No company in the industry is better positioned than Qualcomm to lead the transition to 5G," said Tom Horton, Qualcomm’s Presiding Director. "Qualcomm stockholders expect a Board that will support this innovation while evaluating objectively the full range of opportunities for all Qualcomm stockholders."
Qualcomm Rejects Broadcom's Attempt to Replace Board
Qualcomm today said it won't entertain the idea of replacing its board of directors with substitutes nominated by Broadcom. Earlier this month, Broadcom nominated 11 people to Qualcomm's board of directors.
Broadcom Lowers Offer for Qualcomm, Qualcomm Says No Way
Broadcom revised its offer to acquire Qualcomm downward by $3 per share after Qualcomm increased its own bid to buy NXP Semiconductors. Broadcom said, "Qualcomm's board acted against the best interests of its stockholders by unilaterally transferring excessive value to NXP's activist stockholders." Broadcom would have preferred to see Qualcomm act together with Broadcom to broker the right deal for NXP while still allowing Broadcom to move forward with its own offer to buy Qualcomm.
Qualcomm Rejects Broadcom's Acquisition Offer
Qualcomm's board of directors today unanimously rejected Broadcom's Nov. 6 offer to buy the company in a deal that would have been valued at approximately $130 billion.
Qualcomm Rejects Broadcom's Latest Acquisition Offer, But Leaves Door Open
Qualcomm's board of directors today unanimously rejected Broadcom's revised bid to acquire the company for $121 billion. Qualcomm's board continues to insist that Broadcom is undervaluing Qualcomm's overall worth.