Qualcomm is now set to hold its annual shareholder’s meeting on March 6 and part of the agenda of the meeting is to vote on Broadcom’s nomination of six board member candidates. Qualcomm and Broadcom have launched a “shareholder” battle, believing that they can promote their candidates. In a letter to shareholders, Qualcomm restated that Broadcom’s current valuation of $79 per share and its previous offer of $82 per share widely falls short of the value of the company and it is not worth negotiating. We think it is in the best interests of shareholders to continue to substantially raise the prices of Broadcom.
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Qualcomm claims that it has communicated with Broadcom on price, regulatory and other issues, but Broadcom declined comments. Broadcom did not explicitly elaborate on the shareholder value and regulatory aspects of the deal. At the same time, Broadcom also sent a letter to Qualcomm shareholders, hoping they will support Broadcom’s nomination of six directors to Qualcomm board of directors. Broadcom emphasized that the company was delighted with regulatory approvals for the acquisition of Qualcomm, and that the company plans to relocate its headquarters to the United States and that the transaction will not face a detailed national security review.