Broadcom to unveil challenge to Qualcomm’s board

NEW YORK: Chipmaker Broadcom Ltd will take its first formal step toward a hostile bid to take over Qualcomm Inc, unveiling nominees whom Qualcomm shareholders can vote on to replace the US semiconductor company’s board of directors, according to people familiar with the matter.
Broadcom’s move comes after Qualcomm rejected its $103 billion cash-and-stock bid last month. Qualcomm shareholders who want the company to engage in sale talks will be able to vote on Broadcom’s board director slate on March 6. Broadcom has lined up nine men and two women as board director nominees, many of whom have considerable experience in the technology sector, the sources said on Sunday. Private equity firm Silver Lake, an investor in Broadcom, has helped with the effort to recruit the nominees, the sources added.
Broadcom will not be unveiling any new offer for Qualcomm on Monday, the sources said. It has been considering an improved bid, and will likely present it by March based on the reception its board director slate receives from Qualcomm shareholders, the sources added. It was reported last month that Broadcom was considering raising its offer by offering more of its own stock. The sources asked not to be identified because the deliberations are confidential. Broadcom and Qualcomm declined to comment. — Reuters