On November 14 news, Qualcomm announced today that the company's board of directors has rejected Broadcom's initiative to acquire the company (Broadcom) on November 6. They believe that Broadcom underestimated the value of Qualcomm. In the next few weeks, a fierce battle like a "barbarian at the door" may unfold between the two chip giants. ...
According to a report from PR Newswire on November 13th, Beijing time, Qualcomm announced today that the company’s board of directors unanimously decided to reject Broadcom’s voluntary takeover offer on November 6.
Qualcomm executive chairman Paul Jacobs said: "The company's board of directors unanimously believes that Broadcom's offer underestimates Qualcomm's value relative to the company's leadership in mobile technology and our future growth prospects."
Qualcomm CEO Steve Mollenkopf (Steve Mollenkopf) said: "In the fields of mobile, Internet, automotive, edge computing (Edgecomputing) and networking, Qualcomm is in a better position than any other company. As we are in these extremes The attractive market continues to grow and is leading the transition to 5G. We believe that we can create more additional value for shareholders."
Qualcomm’s Presiding Director Tom Horton said: “The board and management are very focused on driving value for Qualcomm’s shareholders. After a comprehensive evaluation in cooperation with financial and legal advisors, the board concluded that Broadcom’s The offer significantly underestimates Qualcomm and faces significant regulatory uncertainty. We are highly convinced that the strategy implemented by Steve and his team can provide shareholders with far better value than this offer."
Broadcom response: We will not give up
Bloomberg reported on the 14th Beijing time that in response to Qualcomm’s rejection, Broadcom CEO Hock Tan said: “We still believe that our proposal is the most attractive and value-enhancing option that Qualcomm shareholders can see. , And their response encouraged us.
He said that many people have expressed to us that they would like to see Qualcomm sit down and discuss our proposal with us. We are still very inclined to actively interact with Qualcomm's board of directors and management. "
If the acquisition of Qualcomm is successful this time, the combined Broadcom will not only become the world's third largest semiconductor company after Samsung and Intel, but also control the supply chain of Samsung and Apple chips; if the acquisition is unsuccessful, Hock Tan Earlier this month, it was stated that if Qualcomm refused, Broadcom still intends to conduct a hostile takeover.
Peanuts, melon seeds, mineral water, small bench...A good show is about to be staged
Broadcom has been considering acquiring Qualcomm for several months, and it hopes to become a dominant communications chip supplier in the wireless industry. Broadcom initially considered acquiring Qualcomm more than a year ago. At that time, Qualcomm had not announced the acquisition of NXP, but Broadcom later cancelled the acquisition plan.
This time, Broadcom is determined to make its takeover offer attract the attention of investors. People familiar with the matter said that Broadcom will not hesitate to initiate a war of agency rights to obtain a seat on the board of directors of Qualcomm to support the acquisition.
Qualcomm's annual general meeting is scheduled to be held in March next year, and the deadline for director nomination is sometime in December this year. According to Reuters, Broadcom is already looking for new candidates for Qualcomm management before the December 8 deadline.
How Broadcom will move, whether to raise the purchase price to the management or hostile takeover, and Qualcomm will adopt other than poison pill defense, white knight, double equity, self-harm or which common strategies, etc., become the biggest highlight of this case.
