Qualcomm urges shareholders to re-elect board 

Qualcomm urges shareholders to re-elect board

Qualcomm urges shareholders to re-elect board 

“Dear Qualcomm Stockholder, Last week we released a presentation and a video that we believe clearly demonstrate why Broadcom’s hostile takeover proposal dramatically undervalues your Company and is not in the best interests of all Qualcomm’s stockholders.

In this letter, we highlight the significant regulatory issues with Broadcom’s (AVGO) proposal that Qualcomm (QCOM) stockholders must consider.

In summary: Even if Broadcom were to make a proposal that delivered fair value to Qualcomm stockholders, the complex regulatory challenges mean that Broadcom would not deliver that value to Qualcomm stockholders for what is likely to be 18 months or more – if ever.

Broadcom’s claim that it can deliver immediate cash to Qualcomm stockholders through its proposal is completely false.

Broadcom launched a proxy fight to replace Qualcomm’s world-class Board with nominees selected by it and its private equity backer, Silver Lake Partners.

If elected, these nominees – who lack significant large-cap technology Board experience – would be given control of one of the largest, most complex technology companies in the world.

In over two months since making their hostile proposal, Broadcom hasn’t taken the necessary steps to start the regulatory approval process in most countries around the world.

This is the largest proposed technology transaction in history and will require thorough reviews from both antitrust regulators and national security groups in multiple countries around the world.

Regulators in many countries may call for conflicting remedies based on their specific concerns. The regulatory process will be very long and complicated, and we believe it is highly doubtful that the proposed transaction will ultimately be approved.

In short, the Broadcom proposal raises significant regulatory and national security risks which will be compounded by the public and private customer opposition.

With these facts in mind, we believe electing Broadcom’s nominees makes no sense for Qualcomm stockholders and puts your Company at risk of significant value loss in the likely case the deal is not approved.”


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This article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility.

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