Qualcomm on Tuesday urged it’s shareholders not to “voluntarily transfer to a hostile acquirer” control of a company poised to capitalize on a leadership position in the emerging 5G wireless market.
“Broadcom is trying to force Qualcomm stockholders to make a decision before Qualcomm’s substantial 5G and other value opportunities are realized,” the San Diego-based wireless pioneer said in a lengthy letter to shareholders.
Broadcom, which is based in Singapore but plans to move its headquarters to San Jose, made an unsolicited $130 billion offer for Qualcomm in November. The offer was unanimously rejected by Qualcomm’s board.
Qualcomm said Broadcom’s offer of $60 in cash and $10 in Broadcom stock “dramatically undervalues Qualcomm,” which was trading above $67 per share on Tuesday morning.
“It is designed to benefit only Broadcom stockholders — not Qualcomm stockholders,” the San Diego company said.
The two companies are waging a proxy battle that will come to a head on March 6 at Qualcomm’s annual shareholders meeting.
In its letter to stockholders, Qualcomm offered specific instructions to reject a takeover and provided a link to a video presentation led by CEO Steve Mollenkopf.
“The Qualcomm board strongly objects to Broadcom’s aggressive tactics and urges you to reject its solicitation efforts by voting FOR the re-election of Qualcomm’s highly qualified slate of directors on the enclosed WHITE proxy card today,” the company said. “Vote only the WHITE proxy card — please discard any blue proxy cards you receive from Broadcom.”