Broadcom moves to unseat Qualcomm board in hostile takeover effort
0Broadcom moves to unseat Qualcomm board in hostile takeover effort.
Broadcom is turning up the heat on its unsolicited $130 billion bid to buy Qualcomm. On Monday, the wireless and broadband player submitted a proposal to nominate a slate of 11 independent directors to replace Qualcomm's entire current board, setting the stage for a proxy fight over control of the global chip giant.
Broadcom offered to buy Qualcomm last month in a massive deal that would potentially create a semiconductor, industrial internet and 5G juggernaut.
The deal was quickly shut down in a unanimous decision by Qualcomm's board, which said the deal undervalued Qualcomm and its future prospects. Qualcomm also argued that the deal would bring "significant regulatory uncertainty" which could have led to outright regulatory rejection, complicated discussions, and a long road to meet legal requirements and maintain value.
However, Broadcom chief executive Hock Tan said that Qualcomm shareholders have approached Broadcom and expressed interest in the acquisition offer. Broadcom is now trying to force Qualcomm to the bargaining table by engaging directly with its shareholders and proposing a board that supports the deal.