Qualcomm Board Urges Shareholders to Ignore Broadcom's 'Inadequate' Offer
Qualcomm directors urged shareholders in a Thursday letter to ignore proxy cards they receive from Broadcom and vote for re-election of the existing board. They cited Broadcom's lower takeover proposal for $79 per share, down from $82, saying it made…
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"an inadequate proposal even worse despite the indisputable increase in value and certainty that Qualcomm stockholders will receive from the compelling and highly accretive acquisition of NXP." Broadcom refuses to engage with Qualcomm on price, said the board. Broadcom's current proposal "undervalues Qualcomm, fails to take into account the strategic and financial benefits of acquiring NXP, and continues to face a long and highly uncertain path to regulatory approvals," it said. An NXP acquisition would provide "significant strategic benefits" including increased revenue diversification, substantial expansion of serviceable addressable markets and more scale in high-growth automotive and IoT segments, it said. Qualcomm reached agreement with NXP Tuesday to increase its previously announced cash tender offer to buy all outstanding stock from $110 to $127.50 per share.