(Reuters) – Chipmaker Broadcom Ltd ( AVGO.O ) made its first formal move towards a hostile bid to take over Qualcomm Inc ( QCOM.O ) on Monday, why a list of 11 nominees he wants to put on the board of the American semiconductor firm.
Shares of both companies fell when Qualcomm confirmed it had received the list, saying the Broadcom stock was a "blatant attempt to take control of the Qualcomm board to advance Broadcom's acquisition agenda."
Qualcomm rejected Broadcom's $ 103 billion last month "and shares offer, saying it dramatically undervalued the company, a line it repeated in Monday's statement.
Shareholders may vote for or against Broadcom's nominees at an annual meeting on March 6.
The list of nine men and two women included a former president of Nokia's mobile network business group and the former director and chairman of the board of Dialog Semiconductor Plc ( DLGS.DE ).
"We have heard from many Qualcomm shareholders who have expressed their desire for Qualcomm to interact with us," Broadcom Chief Executive Hock Tan said in a statement on Monday.
"Try it s to establish a relationship with Qualcomm repeatedly and, in spite of the shareholder and customer service for the transaction, Qualcomm has ignored those opportunities. The nominations give … the shareholders the opportunity to express their disappointment. "
The list will be very badyzed, since the nominees will not only be asked to put Qualcomm on sale, but will have to monitor The company until the time comes with Broadcom closes.
"These nominees are inherently in conflict given Broadcom's desire to acquire Qualcomm in a manner that It dramatically underestimates Qualcomm for the benefit of Broadcom, "Qualcomm said.
Reuters reported on Sunday that Broadcom would disclose nominees on Monday and that private equity firm Silver Lake, an investor in Broadcom, helped with the reclbadification effort. utar the nominees.
Qualcomm said in its statement on Monday that Broadcom and Silver Lake were effectively asking shareholders to foreclose options and make a decision now on a proposed non-binding transaction that could not be completed for more than a year.
Broadcom did not give details of any new offer for Qualcomm. Reuters reported last month that Broadcom was considering raising its offer by offering more of its own shares.
Qualcomm shares fell 1.6 percent in the morning exchange, while Broadcom lost almost 3 percent.
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