The company said it will seek the election of 11 new board members at Qualcomm’s next annual meeting on March 6.
“We have heard from many Qualcomm stockholders who have expressed their desire for Qualcomm to engage with us,” said Hock Tan, president and chief executive officer of Broadcom. “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.”
The Singapore-based chip maker made an unsolicited offer on Nov. 6 for to acquire Qualcomm for $70.00 per share in cash and stock, a 28 percent premium over the closing price of Qualcomm’s stock on Nov. 2.
Tan said Broadcom had received “positive feedback from customers” about the proposed merger and was confident that regulatory requirements could be made. He said that despite the looming proxy battle, “it remains our strong preference to engage in a constructive dialogue with Qualcomm.”
Qualcomm confirmed it had received the nomination of a slate of candidates, calling it a “blatant attempt to seize control of the Qualcomm board in order to advance Broadcom’s acquisition agenda.”
The San Diego company also cited a number of problems with Broadcom’s offer, including regulatory issues, lack of financing and uncertainty surrounding Broadcom’s move from Singapore to San Jose.
“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,” 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 available to maximize value for all Qualcomm stockholders.”
The board unanimously rejected Broadcom’s offer on Nov. 13
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