Broadcom kept up its fight for Qualcomm this week, announcing Monday that it had secured funding for its unsolicited bid for the chipmaker and following today with plans to reduce the number of nominees it will seek for Qualcomm’s board.
Those moves come soon after Qualcomm rejected Broadcom’s sweetened “last and final offer” of $82 per share ($60 in cash and $22 in Broadcom stock).
Reuters reported that Qualcomm and Broadcom plan to meet Wednesday (February 14) to discuss Broadcom’s latest offer. Broadcom had urged Qualcomm to meet earlier, over the just-completed weekend.
On the funding end, Broadcom said a dozen financial institutions have agreed to provide up to $100 billion to help finance the cash component of its bid for Qualcomm, as well as a $5 billion revolving credit facility and bridge financing. Broadcom said that means it will have sufficient committed financing to fund the $60 per share cash element.
Those on board for that include BofA Merrill Lynch, Citigroup, affiliates of Deutsche Bank AG , J.P. Morgan, Mizuho, MUFG, SMBC, Wells Fargo, Scotiabank, BMO Capital Markets, RBC Capital Markets and Morgan Stanley.
As an apparent concession of sorts, Broadcom announced today that it would seek the election of six, rather than 11, nominees to the Qualcomm board at Qualcomm’s annual meeting scheduled for March 6. Broadcom’s six nominees are: Samih Elhage, David Golden, Veronica Hagen, Julie Hill, John Kispert and Harry You.
Though the number is reduced, it would still represent a majority of Qualcomm's 11-person board.
“Electing a majority of new board members is the only way for Qualcomm stockholders to obtain the benefit of Broadcom's best and final offer for Qualcomm of $82 per share, which will be withdrawn following the determination of results at the 2018 Annual Meeting unless Broadcom has entered into a definitive agreement to acquire Qualcomm or Broadcom's six independent nominees are elected,” Broadcom said.