Qualcomm on Friday rejected the 11 director nominees picked by Broadcom in addition to private-equity firm Silver Lake Partners, likely setting the stage for a bitter proxy battle between the chipmakers.
Broadcom earlier This kind of month took its first formal step to replace Qualcomm’s board with its slate of nominees.
Qualcomm in November rejected Broadcom’s $103 billion cash-in addition to-stock bid, saying This kind of dramatically undervalued the company.
The U.S. semiconductor firm’s board is usually nominating its 11 incumbent directors for re-election at the 2018 annual meeting, Qualcomm said on Friday.
Broadcom’s list included a former president of the mobile networks business group of Nokia, in addition to the former director in addition to chairman of the board of Dialog Semiconductor.
Qualcomm had then said, “These nominees are inherently conflicted given Broadcom’s desire to acquire Qualcomm in a manner in which dramatically undervalues Qualcomm to Broadcom’s benefit.”
After reviewing Broadcom’s nominees, Qualcomm’s governance committee concluded in which they are inherently conflicted in addition to might not bring incremental skills or expertise to its board, the chipmaker said on Friday.
Reuters previously reported in which Silver Lake, an investor in Broadcom, helped Broadcom recruit the nominees.
Shares of Qualcomm were up marginally at $64.55, while Broadcom’s shares were slightly lower at $261.50 in light premarket trading.