Broadcom to propose new board of directors at Qualcomm AGM

Monday 4 December 2017 | 14:27 CET | News

Broadcom has launched a proxy battle in its attempt to take over Qualcomm, proposing its own slate of directors for election at Qualcomm's AGM in March. The decision follows Qualcomm rejecting Broadcom's offer of USD 130 billion for the company as too low.

Broadcom said in a statement that it has a "strong preference to engage in a constructive dialogue with Qualcomm", but given that Qualcomm has ignored its requests to meet, Broadcom is going ahead with the proxy option. Broadcom said it had met with several Qualcomm shareholders and customers who support its bid, and also held preliminary discussions with regulators that lead it to believe the merger of the two chipmakers could overcome any competition objections.  

The company proposed an entirely new board for Qualcomm of 11 directors, including the former Nokia Networks executive Samih Elhage, former ObjectVideo CEO Raul Fernandez, former Dialog and LSI chairman Gregorio Reyes and a number of top advisers from investment firms such as Temasek, Volpe, Revolution Ventures and Black Diamond Ventures. The hope is that Qualcomm shareholders who support Broadcom's offer will vote in the new board, allowing the two companies to negotiate a deal. 

Broadcom said that if elected, the new board would vote to return the existing Qualcomm directors Mark D. McLaughlin (CEO of Palo Alto Networks), Tony Vinciquerra (CEO Of Sony Pictures Entertainment) and Jeffrey Henderson (advisory director at Berkshire Partners).

Qualcomm's annual shareholders meeting is scheduled for 08 March. 

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