Qualcomm slammed Broadcom’s “blatant attempt” to seize control after its suitor nominated candidates for its upcoming board elections.
In an apparent attempt to push through a blockbuster $130 billion takeover bid, Broadcom nominated 11 executives for Qualcomm’s board. The move would see Broadcom’s preferred candidates occupy every seat in Qualcomm’s boardroom.
Qualcomm pulled no punches in a statement responding to the move, calling the list of nominees “inherently conflicted” in light of Broadcom’s attempt to acquire the company “in a manner that dramatically undervalues Qualcomm”.
The company said Broadcom was asking its investors to make an immediate decision on what it called a “non-binding proposed transaction” which carried significant risk of being rejected by authorities.
It added Broadcom had so far failed to clarify how it would address regulatory concerns, a lack of committed financing and uncertainty surrounding a move from Singapore to the US.
Shareholders can vote to elect company directors in March 2018.
In its statement announcing the nominations, Broadcom reiterated previous comments regarding receiving positive feedback from Qualcomm shareholders about its takeover bid.
“Having had initial meetings with certain relevant antitrust authorities, [we] remain confident that any regulatory requirements necessary to complete a combination will be met in a timely manner,” Broadcom said.
“We have repeatedly attempted to engage with Qualcomm, and despite stockholder and customer support for the transaction, Qualcomm has ignored those opportunities.”
“The nominations give Qualcomm stockholders an opportunity to voice their disappointment with Qualcomm’s directors and their refusal to engage in discussions with us.”
Its list of candidates include ex-Nokia president Samih Elhage, former chairman of Dialog Semiconductor Gregorio Reyes, vice-chairman of Monumental Sports and Entertainment Raul Fernandez, and CEO of Polymer Group Veronica Hagen.