Qualcomm to make case to shareholders against Broadcom buyout
San Diego-based chipmaker Qualcomm is planning its negative response to rival Broadcom’s offer to buy the company for $130 billion.
Qualcomm has been in a rut for the past year as it has begun a legal counter-offensive to regulators’ and Apple’s claims that it has held a monopoly in its sector of the semiconductor industry. Its stock price has not touched $70 since 2015 — that’s what Broadcom’s bid works down to per share.
Reuters reports Qualcomm CEO Steven Mollenkopf will consult with his board of directors and select shareholders to essentially say that the offer is too low. The response could come anytime from Monday onwards, depending on how much consideration is put into it.
The company’s board of directors will cycle in the coming weeks. It’s reported that Broadcom may submit a ballot of alternate members to Qualcomm’s shareholders on or before December 8, the deadline for nomination. Broadcom could also increase its bid to enhance the deal’s appeal.
This month, Broadcom had reincorporated from Singapore to the United States, partly due to anticipation for corporate tax overhaul.