Broadcom has nominated its choices for members on Qualcomm’s board of directors in an attempt to pressure the competing chipmaker to negotiate a sale of the San Diego-based company.
Qualcomm rejected an acquisition offer from Broadcom of $70 per share last month — up from its current market position in the lower 60’s. Many of its shareholders wanted to see a valuation of at least $80 per share. Others in the pool, however, who have been holding QCOM stock for a long time without seeing much upward momentum could be more willing to take the offer as-is and could support the San Jose counterpart’s nominations for top management.
“We have heard from many Qualcomm stockholders who have expressed their desire for Qualcomm to engage with us,” said Broadcom CEO Hock Tan. “We also continue to receive positive feedback from customers and, having had initial meetings with certain relevant antitrust authorities, remain confident that any regulatory requirements necessary to complete a combination will be met in a timely manner.”
Hock Tan has a reputation of acquiring companies on his terms — target companies that have asked for a higher offer have usually settled at or less than Tan’s original offers. The company says that the $70 per share offer will stand even if Qualcomm’s $38 billion acquisition of NXP Semiconductors is consummated before the board nomination takes place at Qualcomm’s annual meeting in March.
Tan insists that he would prefer “to engage in a constructive dialogue with Qualcomm,” though one intention is clear: he wants to own Qualcomm.