Broadcom Aims to Strong-Arm Qualcomm
With its opening bid rejected and no sign of what it calls "constructive dialogue" from its takeover target Qualcomm, Broadcom has gotten all aggressive with the wireless chip giant by issuing a statement saying it wants to replace Qualcomm's entire board at its next annual meeting of stockholders, which is due on March 6, 2018. (See Broadcom Offers $130B for Hostile Takeover of Qualcomm.)
In taking this approach, Broadcom Corp. (Nasdaq: BRCM) has bypassed what seemed like its most likely next step, which was to increase its offer. Instead it is trying to undermine the Qualcomm Inc. (Nasdaq: QCOM) board and sow seeds of doubt in the minds of Qualcomm's investors. (See Broadcom Mulls Bigger Bid for Qualcomm – Report.)
For more details on this latest move, announced Monday, check out this analysis from our sister site, Telecoms.com: Broadcom cheekily bids to replace entire Qualcomm board.
Meanwhile, the consensus of opinion amongst the Light Reading community is that Broadcom's bid to buy Qualcomm is "madness." Of the 350+ votes so far in our poll on the development, only 35% believe this is a good move by Broadcom, while almost 65% think it's crazy. (See Should Broadcom Really Be Buying Qualcomm?)
Add your vote here and see if opinion is shifting.
Broadcom's share price ended Monday down 2.9% at $263.61, while Qualcomm's stock closed down 1.4% at $64.56.
— Ray Le Maistre, International Group Editor, Light Reading