Qualcomm rejects Broadcom’s board nomination
Qualcomm rejected Broadcom’s nomination for an 11-member board of directors and has opted to nominate its incumbent members at its annual shareholders meeting.
Broadcom’s ballot, forwarded in conjunction with Silver Lake Partners, is an attempt at getting its San Diego-based rival to the negotiating table. The San Jose firm wants to acquire Qualcomm at a valuation of $105 billion, a figure that many shareholders say is too low to sell.
Of Broadcom’s suggested board, Qualcomm deemed that the nominees were “inherently conflicted and would not bring incremental skills or expertise to the Qualcomm Board.”
The company also addressed the overarching bid for its business:
Broadcom and Silver Lake are asking Qualcomm stockholders to turn over control of their Company now to the hand-picked Broadcom-Silver Lake nominees based on a proposal that dramatically undervalues Qualcomm and is not actionable due to its significant regulatory uncertainty, which may not be resolved for 18 months, if ever, and lack of committed financing. Broadcom has made no commitments to resolve the serious regulatory issues inherent in its proposal.
Separate from its annual shareholders meeting, investors will have their say of who gets to run Qualcomm at the company’s annual meeting in March.