Broadcom was expected to present eleven nominees for the Qualcomm board in what will likely be considered the first step towards a hostile takeover of the chip maker, Reuters reported.
According to the news outlet, Broadcom will put forward its selections this week, with many said to have “considerable” experience in the technology sector. The identity of the candidates was not revealed.
Qualcomm’s deadline for director nominations is 8 December, with shareholders due to vote on nominees in at an investor meeting in March 2018. Broadcom is said to be confident it holds sufficient Qualcomm shareholder support for both the acquisition and its choice of directors.
A move to install its own choices on the Qualcomm board follows the rejection of a record-breaking $130 billion bid for Qualcomm in November.
Since the offer was turned down, speculation was rife on if or when the company would increase its bumper bid: recent reports claimed an improved bid is unlikely to be made until the run-up to the Qualcomm investor meeting.
Should a deal be accepted, it would still need to go through a lengthy regulatory process, which Qualcomm’s board maintained carries significant risk of leading to the deal being blocked. Reuters noted the regulatory process would likely take a year to complete.
If the acquisition goes through, it would be the largest sum paid for a listed technology company and create the third-largest semiconductor manufacturer in the world.