Last month, Qualcomm rejected a buy offer of $ 70 per share from Broadcom, but the rival chipmaker is not moving away. Today it is announced that he is nominated for a list of eleven directors for the Qualcomm board of directors.
The move puts pressure on Qualcomm's board to commit to Broadcom's approach by paving the way for its own shareholders to vote for an acquisition that the board rejected.  Qualcomm will hold an annual meeting of shareholders on March 6, 2018.
Broadcom says that its previous acquisition offer represents a premium of 28% over the closing price of Qualcomm's common shares in 2 November 2017 also known as the last day of unaffected trading prior to media speculation regarding a possible transaction; and a premium of 33% over Qualcomm's 30-day volume-weighted average price.
But the Qualcomm board continues to argue that the offer "dramatically" undervalues the company.
In a statement confirming the receipt of a list of Broadcom candidates today, Qualcomm also played regulatory uncertainty surrounding the transaction, and urged shareholders to support the existing board of "world clbad directors", emphasizing in which nine are independent and four have been added in the last three years.
More described the move as "a blatant attempt to take control of the Qualcomm Board to advance Broadcom's acquisitions agenda," arguing that the nominees have "intrinsic conflicts given Broadcom's desire to acquire Qualcomm from a way that dramatically underestimates Qualcomm for the benefit of Broadcom. "
"No company in the industry is better positioned than Qualcomm in mobile devices, IoT, automotive, computing and next-generation networks to lead the transition to 5G," said Tom Horton, director of Qualcomm, in a statement. "Qualcomm shareholders expect a Board to support this innovation while objectively badessing the full range of opportunities available to maximize value for all Qualcomm shareholders."
In his own statement, Hock Tan, president and CEO of Broadcom, said the company's "strong preference" is to get involved in what he described as "a constructive dialogue with Qualcomm." But he also reiterated that the rival has completely rejected his approach so far.
"We tried to establish relationships with Qualcomm repeatedly and, despite the support of shareholders and customers for the transaction, Qualcomm has ignored these opportunities." The nominations give Qualcomm shareholders the opportunity to express their disappointment with Qualcomm's directors and his refusal to enter into conversations with us, "he said.
"In light of the significant value that our proposal provides to the shareholders of Qualcomm, we believe that Qualcomm shareholders will be better served by new independent and highly qualified candidates who commit to maximize value and act in the best interest of the shareholders of Qualcomm. "
The full list of Broadcom nominees can be found here.
If the nominees are elected, Broadcom added that they would support a decision by them to increase the size of the Qualcomm Board and reappoint Mark D. McLaughlin Anthony J. "Tony" Vinciquerra and ] Jeffrey W. Henderson as directors.
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