Broadcom set to unveil challenge to Qualcomm’s board: sources

Published 04/12/2017 in Business, Economy & Finance

Broadcom set to unveil challenge to Qualcomm’s board: sources
FILE PHOTO: A sign to the campus offices of chip maker Broadcom Ltd, who announced on Monday an unsolicited bid to buy peer Qualcomm Inc for $103 billion, is shown in Irvine, California, U.S., November 6, 2017. REUTERS/Mike Blake/File Photo

(Reuters) – Chipmaker Broadcom Ltd (AVGO.O) will take its first formal step on Monday toward a hostile bid to take over Qualcomm Inc (QCOM.O), unveiling nominees whom Qualcomm shareholders can vote on to replace the U.S. 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.

NXP shares have been trading above Qualcomm’s $110-per-share offer price, as many NXP shareholders, including hedge fund Elliott Management Corp, have been holding out for a better price. The spread has tightened, however, in the past month. NXP shares ended trading on Friday at $114.78.

Qualcomm does not need to decide to raise its offer for NXP until that deal receives antitrust clearance from all the regulators reviewing the deal around the world.

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