Broadcom Proposes to Oust Qualcomm's Board
Dec 4, 2017, 11:36 AM by Eric M. Zeman
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."
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