The ongoing efforts of chipmaker Broadcom to take over rival Qualcomm has escalated again. Broadcom is now proposing a new slate to entirely replace Qualcomm’s board of directors after its original $130 billion bid was unanimously rejected by the current board, according to The New York Times.
The proposal represents the next move for Broadcom to try to make the takeover happen by taking the issue directly to Qualcomm’s shareholders. For its part, Qualcomm has already released a statement blasting Broadcom’s attempt, calling Broadcom’s nomination of board members “a blatant attempt to seize control of the Qualcomm Board in order to advance Broadcom’s acquisition agenda.”
Qualcomm also highlights that Broadcom has not yet shown any adequate solutions to any regulatory issues that may come up, and that Broadcom has neither committed financing nor completed its transition from Singapore to the United States as additional concerns about the take over.
That’s in addition to Qualcomm’s leadership believing that Broadcom’s offer “dramatically undervalues Qualcomm.” In particular, as Qualcomm continues to develop chips for mobile and transition to 5G networks, it says the current board remains in the best position to offer better returns for shareholders going forward.
As noted by The New York Times, Qualcomm’s annual shareholder meeting (which will also include the election of board members) isn’t until March 6th, so there’s still a lot of time for Broadcom to make its arguments. Broadcom also has its own quarterly earnings call on December 6th, so it’s possible we’ll hear more about the company’s efforts to take over Qualcomm then.