Chipmaker Broadcom Ltd made its first formal move toward a hostile bid to take over Qualcomm Inc on Monday, laying out a slate of 11 nominees it wants to put on the board of the USA semiconductor firm.
Qualcomm last month rejected Broadcom's US$103 billion cash-and-stock bid, saying it dramatically undervalued the company, a line it repeated in Monday's statement.
But Broadcom could still boost its offer before the March 6 annual meeting, making it more attractive to Qualcomm's shareholders.
The proposal represents the next move for Broadcom to try to make the takeover happen by taking the issue directly to Qualcomm's shareholders.
"We have repeatedly attempted to engage with Qualcomm, and despite stockholder and customer support for the transaction, Qualcomm has ignored those opportunities".
The San Diego-based company confirmed Monday that Broadcom sent a list of candidates to replace its existing Board of Directors at the company's 2018 stockholders meeting.
Broadcom remains confident that it can clear any regulatory requirements needed to complete the deal, including satisfying antitrust authorities, Tan said.
Key quote from the press release: "Qualcomm believes that this action is a blatant attempt to seize control of the Qualcomm Board in order to advance Broadcom's acquisition agenda". Qualcomm said the offer undervalues the company. "The nominations give Qualcomm stockholders an opportunity to voice their disappointment with Qualcomm's directors and their refusal to engage in discussions with us".
On Monday, Broadcom and Silver Lake, a private equity investor, unveiled a slate of 11 nominees to Qualcomm's board - the first step in a potential hostile takeover bid.
Further, Qualcomm said it is exceptionally well positioned - with technology and leadership positions across mobile, IoT, Automotive, edge computing and networking - and leading the transition to 5G.
"Qualcomm's stockholders expect a board that will support this innovation while evaluating objectively the full range of opportunities available to maximize value for all Qualcomm stockholders", said Horton in a statement.