Broadcom late last week began appealing directly to Qualcomm investors to support what would be the largest tech sector merger in history.
The Singapore-based chip maker, which is planning to officially relocate to Delaware, announced Friday it had mailed a proxy card with its slate of Qualcomm board candidates to shareholders, along with a letter touting the potential benefits of a merger between the rival chip companies.
Broadcom officials reiterated that the proposed deal would provide immediate cash value to investors, as well as the opportunity to benefit from the products, scale, finances and R&D resources of a combined company.
“We have a clear roadmap ahead, and expect that the proposed transaction would be completed within approximately 12 months following the signing of a definitive agreement,” the company wrote.
Broadcom in November made an unsolicited offer of $60 per share in cash and $10 per share in stock for San Diego-based Qualcomm. Although the value of the proposal was more than $100 billion, Qualcomm officials said the offer was too low and could raise antitrust issues. A combined company would make the chips used in most of the world’s smartphones.
Reports suggested that prominent Qualcomm shareholders could be interested in a deal at a higher price, but Broadcom initially chose to float its own slate of candidates for the company’s board.
Qualcomm, which is nominating its incumbent members to remain on the board, said it would not support any of Broadcom’s 11 candidates and argued they were “inherently conflicted and would not bring incremental skills or expertise to the Qualcomm board.”
Broadcom said this week it still hopes to “engage cooperatively with Qualcomm’s board and management team” and is prepared “to meet immediately to work toward a mutually acceptable definitive agreement.”
“By voting for all 11 nominees on the BLUE proxy card, you can send a clear message that you want the Qualcomm Board to engage with Broadcom to maximize stockholder value,” the company wrote to shareholders.
Qualcomm’s shareholders meeting will take place in March.