According to a Bloomberg report, ISS did not recommend Qualcomm shareholders vote in support of Broadcom's bid of $ 82 per share in its February 17 report, instead recommending that shareholders vote for four of the 6 Broadcom-nominated directors , In order to prevent Broadcom from getting a majority in Qualcomm's 11-member board of directors, resulting in the failure of Qualcomm's board of directors to obtain the best conditions for mergers and acquisitions for shareholders.
The report from ISS will put more pressure on Qualcomm's leadership, which has rejected Broadcom's $ 121 billion offer, saying the offer is too low and subject to regulatory scrutiny, and that Qualcomm sees the company's business as a brighter future as ISS To Qualcomm poured cold water.
ISS wrote in the report that if Qualcomm's performance is comparable to Broadcom, its optimistic outlook for the future will resonate with shareholders even more. Broadcom's offer appears to be a good starting point for the two sides to negotiate and can take steps to improve its Certainty; or the eventual failure of the transaction will at least provide Qualcomm and its shareholders with a better safety net.
The ISS proposal is expected to get more support from Broadcom CEO Hock Tan, who has said he understands more about how to run the chip company than the current team at Qualcomm, Inc. Through a series of acquisitions, Mr. Chan made Broadcom its strategy based on At the same time, Qualcomm's management insisted on its strategy of investing heavily and trying to expand into new areas.
And Chen Fuyang's strategy has brought substantial revenue and profit growth Broadcom Broadcom shares compared to Chen Fuyang started a series of mergers and acquisitions rose 4 times to about 250 US dollars per share.
For Qualcomm's board of directors, the decision to reject the proposal will test shareholders' confidence in management, including the founder and son of chairman Paul Parsons and Steve Mollenkopf, who succeeded Jacobs as chief executive, all of whom are engineering-centric A member of the leadership team dedicated to bringing state-of-the-art dynamic die technology into new areas such as servers, PCs and automotives.