SAN FRANCISCO, Dec 4 (Reuters) - Broadcom announced on Monday that it has notified Qualcomm that Broadcom will nominate 11 directors to replace all Qualcomm board members, a move that Broadcom has taken a hostile takeover of Qualcomm's first step.
Nov. 6 this year, Broadcom proposed 70 US dollars per share in cash and stock acquisition Qualcomm, the total transaction value of about 130 billion US dollars if the transaction is completed, the semiconductor industry will become the largest mergers and acquisitions ever.
On November 13, Qualcomm announced that the company's board of directors has rejected the offer made by Broadcom on November 6. Qualcomm executive chairman Paul Jacobs said: "The board of directors agreed that Broadcom's offer was underestimated Qualcomm's value. '
In this regard, Broadcom did not give up.A few hours after Qualcomm issued a statement, Broadcom quickly responded that the company is still committed to the acquisition of Qualcomm, and Broadcom shareholders are very interested in the deal.
The U.S. financial website CNBC quoted people familiar with the matter on Tuesday as saying Broadcom is finalizing a list of candidates to replace all members of Qualcomm's board of directors, which currently holds 11 directors.
People familiar with the matter said at the time that Broadcom plans to submit a list of director candidates before the deadline for the nomination of Qualcomm directors on December 8 so that Qualcomm shareholders can elect Broadcom-nominated directors at a general meeting on March 6, 2018.
Hod Tan, president and CEO of Broadcom Corp., said today that it made the decision because of Broadcom's acquisition of Qualcomm shareholders, consumers and antitrust divisions Positive feedback.
Hawk Tan also said that despite this radical approach, but Broadcom still hope to start a constructive dialogue with Qualcomm before Broadcom has repeatedly tried to Qualcomm, although the move has been the support of Qualcomm shareholders and customers, But still rejected by Qualcomm, and the nominee directors will give Qualcomm shareholders expressed their dissatisfaction with the company the opportunity.
Broadcom nominated candidates for the 11 directors were:
Samih Elhage, Former President of Nokia Mobile Network Business Group (MNBG)
Raul J. Fernandez, Vice Chairman, Monumental Sports & Entertainment; Former Chairman and CEO, ObjectVideo
Michael S. Geltzeiler, Temasek holding consultant; Former senior vice president and CFO of ADT Corporation
Stephen Girsky, managing partner of VectoIQ, an independent consultancy firm; former vice chairman of General Motors
David G. Golden, managing partner of venture capital firm Revolution Ventures; 18 years at JP Morgan
Veronica M. Hagen, former president and CEO of Polymer Group
Julie A. Hill, owner of The Hill Company
John H. Kispert, managing partner at venture capital firm Black Diamond Ventures
Gregorio Reyes, former chairman of Dialog Semiconductor
Thomas S. Volpe, managing member of Volpe Investments Investment Company; formerly CEO of Dubai Group Investment Corporation
Harry L. You, president, CFO and director of GTY Technology Holdings Technology Holdings
Currently, Qualcomm's shareholding structure is relatively decentralized.In addition, Qualcomm and Broadcom's top 25 shareholders, there are 17 coincidence, which will also be Broadcom won the proxy battle.