You may have heard that Broadcom submitted a formal acquisition bid for Qualcomm last month. It made an unsolicited $130 billion bid for the chipmaker even though Qualcomm hasn’t been looking for buyers. Qualcomm predictably rejected the bid. Amid reports that the stakeholders were willing to consider a sale if the price was raised, Qualcomm’s board has decided to reject the 11 director nominees picked by Broadcom and private-equity firm Silver Lake Partners.
Broadcom Chief Executive Hock Tan has also said that the company is open to a takeover battle. He previously confirmed that Broadcom would submit nominations for new directors by Qualcomm’s December 8th deadline.
Qualcomm’s governance committed has rejected all the nominees put forward by Broadcom and Silver Lake Partners. The company said in a statement that “These nominees are inherently conflicted given Broadcom’s desire to acquire Qualcomm in a manner that dramatically undervalues Qualcomm to Broadcom’s benefit.”
Qualcomm has also confirmed that its board has nominated the 11 incumbent direcotrs for re-election at the company’s 2018 Annual Meeting. It added that the existing board has a deep understanding of the global IP/licensing and semiconductor business, and that the board has overseen the design and execution of Qualcomm’s strategy.